2012 Shareholder Review

RIGHT PLACE RIGHT TIME
2012
SHAREHOLDER
REVIEW
OUR SUPER
REGIONAL STRATEGY
Strengthening our business in
Australia, New Zealand and the
Pacifc, while establishing a signifcant
presence in key markets in Asia.
Building connectivity to support
customers who are operating
increasingly within and across
ourregion.
Providing our customers with the
right fnancial solutions and insights
to help them progress.
Growing and strengthening the bank
by diversifying our earnings.
OUR SUPER REGIONAL STRATEGY PUTS ANZ IN THE
RIGHT PLACE AT THE
RIGHT TIME
DOING THE
RIGHT THING AT THE
RIGHT TIME
OUR CORPORATE RESPONSIBILITY FRAMEWORK IS DESIGNED TO HELP US BE A MORE
SUCCESSFUL BUSINESS BY PROMOTING OUR VALUES AND BEHAVIOURS THROUGHOUT ANZ
AND BY RESPONDING TO THE INTERESTS AND NEEDS OF THE SOCIETIES AND MARKETS IN
WHICH WE OPERATE.
The framework was developed in consultation with more than 600 stakeholders, including staf, customers, community
groups, non-government organisations, government and regulators.
OUR PEOPLE AND UNIQUE STRATEGY
ARE THE KEYS TO OUR SUCCESS
ANZ is executing a focused strategy to build the best connected, most respected bank across the Asia Pacifc region.
We have continued to
improve our governance
structures; management
of social, environmental
and reputation risks and
opportunities; and are
supporting our customers
facing hardship (page 26).
We can make a signifcant
and sustainable
diference to the lives
of disadvantaged and
under-represented
individuals through
providing education and
employment opportunities
(page 28).
Our programs are helping
to build fnancial capability
in our communities across
our region, particularly for
those on low incomes, and
those from disadvantaged
backgrounds (page 30).
We are playing a role in
helping to bridge urban
and rural divides through
extending banking access
and supporting fnancial
inclusion (page 32).
We can do much to reduce
the environmental footprint
of our business activities
and to encourage and
support our customers to
reduce theirs (page 34).
Responsible practices
Creating education
and employment
opportunities
Building
fnancial capability
Bridging urban
and rural divides
Supporting
urban sustainability
About this document
The 2012 Shareholder Reviewprovides
an overviewof ANZs 2012 fnancial
and non-fnancial performance and the
Groups strategic direction.
Our work promoting money
management skills among
disadvantaged groups remains our
priority community investment focus.
All information contained within this
document is for the year ended
30 September 2012 unless otherwise
stated. All fgures are in Australian
dollars unless otherwise stated.
More information
General information on ANZ can be
obtained fromour website anz.com.
Shareholders can visit our Shareholder
Centre on shareholder.anz.com.
ANZCorporate Governance Policies,
Charters, Codes of Conduct andEthics
Information regarding ANZ Corporate
Governance including information
about the Board, Board-related
charters, the Group Codes of Conduct
and Ethics, the Conduct and Ethics
Policy Framework (including Fraud
Policy, Anti-Bribery and Anti-Corruption
Policy, Whistleblower Protection
Policy, Equal Opportunity, Bullying
and Harrassment Policy, Health and
Safety Policy), the ANZ Constitution,
ANZ Shareholder Charter and other
related items can be accessed on the
ANZ website anz.com/governance. INTHIS REVIEWThe corporate responsibility content of this Shareholder Reviewfocuses onour material impacts, concentratingonbuildinganengagedand
ethical workforce andour responsible practices, withdecisions informedby ongoingstakeholder engagement. It covers the fve priority areas of our Corporate
Responsibility (CR) framework, as showninthe diagramabove. These matters all contribute toour buildinga high-performingsuper regional culture.
ON ANZ.COM Our full Corporate Responsibility Report, for the fnancial year ending 30 September 2012 can be read at anz.com/cr.

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SPONSI BLE GROW
T
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2 Strategic Overview
3 Corporate Responsibility
4 Financial Highlights
5 Non-Financial Highlights
6 Chairmans Report
8 Chief Executive Ofcers Report
10 ANZs Super Regional Strategy:
AFive-Year Progress Report
14 Australia
16 International & Institutional
Banking
18 New Zealand
20 Global Wealth & Private Banking
22 Global Technology, Services
&Operations
24 Delivering Against Targets
26 Responsible Practices
28 Creating Education and
Employment Opportunities
30 Building Financial Capability
32 Bridging Urban
and Rural Divides
34 Supporting Urban
Sustainability
36 Financial Five-Year Summary
37 Non-Financial Five-Year
Summary
38 Non-Executive Directors
Remuneration
39 Remuneration Overview
42 Handy Contacts
CONTENTS
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PROGRESS
3 2
FINANCIAL
HIGHLIGHTS
ACHIEVEMENTS
NON-FINANCIAL
HIGHLIGHTS
ECONOMIC CONTRIBUTION
2011
5,355
5,661
Group net proft
after tax $m
INCREASE
6%
2012 2011
5,652
6,011
Group net proft after
tax (underlying
#
) $m
INCREASE
6%
2012 2011
9,094
9,557
Group proft
before provisions
(underlying) $m
INCREASE
5%
2012 2011
397.3
427.8
Net loans
and advances $b
INCREASE
8%
2012 2011
296.8
327.9
Customer deposits $b
INCREASE
10%
2012 2011
Total Employees (FTE)*
48,239
50,297
^
DECREASE
4%
2012 2011
4,355
Taxes Collected *** $m
3,585
I NCREASE
21%
2012 2011
2,829
Taxes Borne** $m
2,782
I NCREASE
2%
2012
Employee engagement remained
steady at 70%.
37.8%women in management.
$14.9m directly contributed to
communities (as community investment).
Nearly 87,000 hours volunteered
byemployees.
More than 200,000 people now benefting
from ANZs fnancial literacy programs.
#
ANZ adjusts statutory proft for certain non-core items to calculate underlying proft. The non-core items include one-of gains and losses,
non-continuing businesses, timing diferences on economic hedges and acquisition-related costs.
STRONG
One of the
largest banks
globally
20
Dividend increased by A top
listed company
FOUR 4%
We are a member of:
We actively participate in:
ECONOMIC
INDICATORS
Economic value generated$m2012:
Revenues 36,139
Economic value distributed2012:
Operating costs (excluding employment) ($m) 3,754
Employee wages and benefts ($m) 4,765
Payments to providers of funding
1
($m) 22,130
Financial contribution we have made to the community
(community investment)
2
($m) 14.9
Volunteer hours donated by ANZ people
2
86,758
THE ECONOMIC CONTRIBUTION WE MAKE TO SOCIETY IS MORE THAN FINANCIAL PROFITS.
WECREATE JOBS, PAY SALARIES AND INVEST IN THE SKILLS OF OUR PEOPLE. WE ALSO PAY
TAXES IN THE COUNTRIES WHERE WE OPERATE, SUPPORT BUSINESSES IN OUR SUPPLY CHAIN
AND PROVIDE PRODUCTS THAT SATISFY THE NEEDS OF OUR CUSTOMERS.
*FTE excludes staf on special leave including leave without pay, parental leave and long-term sick leave. **Taxes borne: immediate cost to
ANZ; impact to the proft and loss account and includes income tax, GST/VAT and employment taxes. ***Taxes collected: No cost to ANZ.
Collected from customers, suppliers and employees etc on behalf of the revenue authorities.
^2011 FTE numbers adjusted to include APEA contractors.
1
Payment to providers of funding includes all amounts pertaining to dividends paid to shareholders, interest payment made to providers of
loans, interest on all forms of debt and borrowings as well as arrears of dividends due to preferred shareholders.
2
We measure community
investment using the London Benchmarking Group (LBG) methodology. This does not include forgone revenue.
One of the 20 largest
banks globally by market
capitalisation.
Common equity tier 1
ratio of 8.8%.*
Total dividend of 145c per
share, up 4%on 2011.
A top 4 listed company on
the ASX with over 439,000
shareholders.
FI NANCI AL & STRATEGI C OVERVI EW
Delivered a record underlying proft of $6.01 billion, up 6%on 2011.
Increased diversity of revenue with 21%of group revenue derived
outside of Australia and New Zealand in 2012.
Launched Banking on Australia, a fve-year $1.5 billion program that
includes branch transformation and greater focus on new consumer
technologies and channels all aimed at delivering an improved
customer experience and more fexible, lower cost footprint.
ANZ has been ranked the most sustainable bank globally in the 2012
Dow Jones Sustainability Index (DJSI), the ffth time in six years.
capital position
*Measured under APRA Basel II prudential capital standards
Since 2010 we have been carbon neutral
across our worldwide operations, using ofsets
accredited to the Australian Governments
National Carbon Ofset Standard (NCOS).
5 4
This information sets out Board Committee memberships as at
30 September 2012. Full biography details can be found on our website:
anz.com/about-us/our-company/executive/board-of-directors.
>
ALISON WATKINS
Chair of Human
Resources Committee
BCom, FCA, F Fin, FAICD
Director since November 2008. Member of
the Audit and Governance Committees.
>
JOHN MORSCHEL
Chairman
DipQS, FAICD
Director since October 2004.
Chairman since March 2010.
Ex ofcio member all Committees.
>
PAULA DWYER
BCom, FCA, F Fin, FAICD
Director since April 2012.
Member of the Audit and Risk
Committees.
>
GREG CLARK
Chair of Technology
Committee
BSc (Hons), PhD, FAPS, FTSE
Director since February 2004.
Member of the Risk and Human
Resources Committees.
DIRECTORS
YOUR
ANZ DELIVERED A STRONG FINANCIAL RESULT IN 2012 AND MADE CONSIDERABLE PROGRESS
WITH ITS SUPER REGIONAL STRATEGY.
I am pleased to report that ANZs statutory proft after tax
for the year ended 30 September 2012 was $5.7 billion, up
6%. This good performance refected continued progress
with our super regional strategy which saw growth across
our key businesses in Australia, New Zealand and Asia
Pacifc, together with a renewed focus on cost management.
The fnal dividend of 79 cents per share brings the total
dividend for the year to 145 cents per share fully franked,
anincrease of 4%.
Our capital position remains strong, placing ANZ among the
worlds best capitalised banks and we remain one of only a
small number of banks globally which have maintained an
AA rating from all three credit ratings agencies.
SUPER REGIONAL STRATEGY
Over the past fve years we have had a consistent focus
on creating the regions best connected and most
respected bank.
2012 has been another year of achievement. In Asia, we
continued to invest. For example, in our subsidiary bank
in China we increased capital to support growth. Greater
China, including Hong Kong and Taiwan, is now ANZs
largest market outside Australia and New Zealand. We also
opened our frst Malaysian branch in Labuan.
In Australia and New Zealand, our largest markets, we also
continued to invest in customer service and innovation,
andin leveraging connectivity with our international
network. This is increasingly a source of diferentiation,
particularly in Commercial and Institutional banking.
At the same time, we have increased our focus on simplifying
the bank and on containing cost growth. Alistair Currie
was appointed to the role of Group Chief Operating Ofcer
to deliver a more integrated approach to technology,
shared services and operations. In NewZealand, we made
signifcant progress with our simplifcation program,
including our migration to one technology platformand
a decision to move to a single brand.
CUSTOMERS, OUR PEOPLE AND THE COMMUNITY
Since the onset of the global fnancial crisis, the reputation
of banks throughout the world has been challenged.
Although Australian banks have remained strong
throughout this period, we have also had to face up to
community concerns about our industry and increase our
eforts with customers and with the wider community.
As we made structural changes to our business in 2012 to
adjust to the more difcult operating environment, our
leading position on retail customer satisfaction slipped in
Australia but has since regained momentum. Although we
have maintained strong customer satisfaction in NewZealand,
management refocused their eforts on improving satisfaction
in Australia. There was early recognition of our progress with
ANZ receiving awards
1
as Bank of theYear, Mortgage Lender
of theYear and Business Bank of theYear in 2012.
We were also pleased to be recognised for our long-term
commitment to building the money management skills
and savings of disadvantaged groups, receiving two major
awards at the MoneySmart Week Awards in Australia.
Throughout 2012, we have continued to equip our people
for high performance, continuing to support them to make
ethically, socially and environmentally responsible decisions,
while promoting their wellbeing.
We have linked ANZs super regional strategy to our
corporate responsibility framework and continued to work
with stakeholders to guide our activities. This includes
reviewing and improving our responsible lending practices
which have been built into our training programs.
ANZ was ranked the most sustainable bank globally in the
2012 Dow Jones Sustainability Index.
OUTLOOK
The global economy is softening as we enter our 2013
fnancial year with many European economies contracting
and the United States continuing to recover slowly.
Although Chinas economy is also in a managed slow-down
we expect it will continue to grow at 78%in 2013. This will
see Asia remain the best performing region in the world.
In Australian and New Zealand consumer and business
confdence remains weak and growth during 2013 is
expected to be around 2.7%and 2.5%respectively.
Although the year ahead looks challenging with headwinds in
a number of areas, ANZs unique strategy and the momentum
we have in adapting to the newenvironment for banks means
we are well placed to deliver value to our shareholders, our
customers and the community.
Finally, on behalf of shareholders, I would like to
acknowledge the commitment and dedication of our
management team and of all our 48,000 staf who have
worked so hard in 2012. My thanks also go to my fellow
Directors for their commitment and support during the year.
A MESSAGE FROM
JOHN MORSCHEL
>
MICHAEL SMITH, OBE
Chief Executive Ofcer
Executive Director
BSc (Hons)
Chief Executive Ofcer since 1 October 2007.
CHAI RMAN S REPORT
>
PETER HAY
Chair of Governance
Committee
LLB (Melb), FAICD
Director since November 2008. Member of the
Audit andHumanResources Committees.
>
IAN MACFARLANE, AC
Chair of Risk Committee
BEc (Hons), MEc, Hon DSc (Syd), Hon DSc
(UNSW), Hon DCom (Melb), Hon DLitt
(Macq), Hon LLD (Monash)
Director since February 2007. Member of
the Governance and Audit Committees.
>
DAVID MEIKLEJOHN, AM
Chair of Audit Committee
BCom, DipEd, FCPA, FAICD, FAIM
Director since October 2004. Member of
the Technology and Risk Committees.
>
LEE HSIEN YANG
MSc, BA
Director since February 2009.
Member of the Risk, Human
Resources and Technology Committees.
1
Money magazine Bank of the Year and Home Lender of
the Year. AFR Capital Business Bank of the Year 2012. Top 5
Corporate Bank, Greenwich Associates Survey 2012.
JOHN MORSCHEL
Chairman
>
7 6
A MESSAGE FROM
MICHAEL SMITH
>
SUSIE BABANI
Group Managing Director,
Human Resources
>
DAVID HISCO
Chief Executive Ofcer,
New Zealand
>
SHAYNE ELLIOTT
Chief Financial Ofcer
>
NIGEL WILLIAMS
Chief Risk Ofcer
>
PHILIP CHRONICAN
Australia
>
GRAHAM HODGES
Deputy Chief Executive Ofcer
>
ALEX THURSBY
International & Institutional
Banking
>
ALISTAIR CURRIE
Group Chief Operating Ofcer
>
ANNE WEATHERSTON
Chief Information Ofcer
>
JOYCE PHILLIPS
Chief Executive Ofcer, Global
Wealth and Private Banking
BOARD
MANAGEMENT
CHI EF EXECUTI VE OFFI CER S REPORT
OUR 2012 RESULTS HIGHLIGHT THAT AFTER FIVE YEARS ANZS SUPER REGIONAL
STRATEGY IS DELIVERING AND HAS GROWING MOMENTUM.
ANZ has delivered another good performance
1
in 2012
through a consistent focus on delivering our super regional
strategy by strengthening our domestic businesses in
Australia, NewZealand and the Pacifc while driving
signifcant growth in Asia.
Revenue grew5%with market share gains across key
segments and geographies. We continued to invest in our
strategy and future growth with costs up by 4%, but at the
same time we increased our focus on productivity which saw
cost growth trend lower during the year.
Our focus on costs resulted in signifcant change across
ANZwhich impacted many of our staf and so I am pleased
to report that employee engagement remained steady at
70%. Our aim remains to reach global best-in-class standards
through a bank-wide commitment to customer service and
to ensuring ANZ is a great place to work.
DIVISIONAL PERFORMANCE
In the Australia Division we produced a solid result with proft
up 4%benefting frommarket share gains, tighter management
of margins and a strong productivity focus. Retail lending grew
7%while average deposits grewat 12%. Commercial also
performed well, with average growth in customer numbers
and continued leverage of our regional capabilities.
Proft grew 3%in the International and Institutional
Banking Division. The division continues to grow and
diversify its earnings by geography, product and customer
with 43%of revenue and 54%of deposits now derived from
outside Australia and New Zealand. This includes signifcant
growth in many of our priority segments based on the
connectivity of our international network, although this was
ofset by softer demand for loans and signifcant margin
contraction inAustralia.
New Zealand delivered a good performance with proft up
12%. Business simplifcation showed benefts with improved
fnancial results based on productivity improvements and
market share growth in key segments. We also announced
we would move to one brand in New Zealand the ANZ
brand, and in late October 2012 we reached a signifcant
milestone when we moved to a single technology platform.
Proft from the newly-formed Global Wealth and Private
Banking Division was fat, in line with market conditions,
however we saw improving performance trends during the
year, particularly in insurance and investment earnings, and
through productivity gains.
Credit quality was stable with ANZs provision charge of
$1.25 billion broadly in line with 2011 and the Groups
provision coverage remains strong.

OUR STRATEGY AND THE ENVIRONMENT FOR BANKING
While ANZ delivered a good performance in 2012, just as
important has been our strategic progress.
Five years ago, we articulated an ambition to create
value for our shareholders, our customers and the wider
community by becoming a super regional bank a bank
of global quality with regional focus. This included an
aspiration to source 20%of our revenues from outside
Australia and New Zealand.
I am pleased to report, despite having endured the global
fnancial crisis, our network in Asia Pacifc, Europe and
America contributed 21%of Group revenue in 2012.
To deliver this outcome, the scale of transformation over the
past fve years has been signifcant, involving a systematic
and coordinated program of action in every area of the
bank. In this Shareholder Review we have provided a
progress report on our strategy showing how we have
strengthened ANZ in our key domestic markets in Australia
and NewZealand while building a much bigger business in
the growth markets of Asia Pacifc.
While we have made signifcant progress, the journey is not
over. We have set new aspirations which will see further
growth, particularly in Asia, while also adapting the bank to
the post-fnancial-crisis world.
We believe the lower growth business environment that we
have seen following the fnancial crisis will be with us for
the foreseeable future. We have been actively responding to
these fast-changing and challenging conditions in diferent
markets by driving both growth and productivity.
Our 2012 results highlight that after fve years, ANZs
super regional strategy has growing momentum.
ANZhas moved from being a largely domestic bank to an
integrated and growing, regionally focused international
bank that is increasingly delivering diferentiated value
andperformance.
1
All fgures on an underlying basis unless noted otherwise.
>
MICHAEL SMITH
9 8
1
ANZs interpretation of the regulations documented in the Basel Committee publications; Basel III: A global regulatory framework for more
resilient banks and banking systems (June 2011) andInternational convergence of Capital Measurement and Capital Standards (June 2006).
Five years ago, at the start of the 2008 fnancial year, ANZ
embarked on a strategic journey which recognised there
was a unique opportunity to create value for shareholders
by becoming a super regional bank a bank of global
quality with regional focus.
The move recognised a once-in-a-century shift underway
inthe global economy as growth opportunities moved from
the developed economies of the West to Asian economies
and China in particular.
Five years later, ANZs super regional strategy has growing
momentum with investors ranking ANZ highly for its
long-term growth strategy.
The scale of transformation at ANZ over that time has been
signifcant, based on fve key themes and a systematic and
coordinated program of action in every area of the bank.
SUPER REGIONAL BUILDING BLOCKS
From early in the 2008 fnancial year, ANZ undertook a
series of fundamental changes to enable us to successfully
execute our strategy.
We recognised that ANZ would need a diferent sort of
management team to build a signifcant international
business and we recruited a number of senior international
bankers and Asian insiders. This was supported by the
introduction of a new management model focused on
geographies and customer segments rather than the
individual product approach of the past.
ANZS SUPER REGIONAL STRATEGY IS CLEAR, CONSISTENT AND ALIGNED TO THE GROWTH
OPPORTUNITIES IN AUSTRALIA, NEW ZEALAND AND ASIA PACIFIC.
At the same time, we have undertaken a multi-year programto
shift ANZs culture and invest in the training and development
of our people to focus more strongly on performance
underpinned by a clear set of Group-wide values.
Capital has increased by around $11 billion since 2007
with the Groups Common Equity Tier 1 capital ratio at
10.0%at the end of 2012 on a Basel III
1
internationally
harmonised basis.
We have established an enterprise approach to technology
and we have delivered good progress. This includes
a signifcant program to upgrade our technology
infrastructure and improve systems security, stability and
standardisation, and to respond to growing demand, scale
and complexity in the business. This has included delivery
of new cross-border systems in trade, cash management,
capital markets and foreign exchange.
We also established a strong sense of purpose with a clear
fve-year roadmap to source 20%of revenues fromAsia Pacifc
Europe and America by end of 2012. In 2011, we extended
that roadmap with an aspiration to source 25%to 30%of
revenue fromAsia Pacifc, Europe and America by 2017.
To support this, a new brand and visual identity was created
that was relevant in Asia and consistent throughout the
region. At the same time, we have continued our focus on
corporate responsibility. Our contribution to the community
has been guided by our corporate responsibility framework
and has included a signifcant investment in building
fnancial capability. ANZ was recognised as Global Sector
Leader in the Dow Jones Sustainability Index in 2007, 2008,
2009, 2010 and 2012.
GLOBAL FINANCIAL CRISIS
REMEDIATION ANDOPPORTUNITY
These building blocks placed ANZ on a much stronger
footing, however the onset of the global fnancial crisis
during 2008 posed a number of challenges requiring
signifcant and, at times, painful remediation.
This involved focus on addressing customer and
reputational issues arising from non-core businesses.
Subsequently, ANZ exited a number of these non-core
businesses including custodian services, securities lending,
private equity, institutional stockbroking and wholesale
mortgage management.
At the same time, recognising the weaker economic
environment and the needs of our super regional strategy,
we brought in experienced risk management professionals
into key leadership roles and strengthened risk policies
andprocesses throughout the bank.
As business conditions tightened we also simplifed the way
we ran the bank and started a multi-year process of driving
strategic cost reduction. This included reducing the layers of
middle management and investing in our ofshore
operations and technology centres in Bangalore and
establishing new centres in Manila and Chengdu.
Despite these issues, our fnancial strength also allowed us
to look at the crisis as a time of opportunity. We:
acquired Asian assets from the Royal Bank of Scotland in
Taiwan, Singapore, Indonesia, Hong Kong, the Philippines
and Vietnam with approximately two millionclients
purchased the remaining 51%of our wealth management
joint venture with ING in Australia and New Zealand
acquired the deposit and lending books of Landmark
boosting our presence in agribusiness in Australia.
The crisis and subsequent retreat from Asia by weakened
banks from Europe and the United States also created
signifcant opportunities for organic growth by using our
strong credit rating and balance sheet strength to step in
and win business from quality customers.
The end result is that ANZ came out of the fnancial crisis a
stronger bank than we went in. Today we are one of the best
capitalised banks in the world with sector-leading capital
ratios and one of only a small number of banks in the world
rated AA or better.
ESTABLISHING A REAL FRANCHISE IN ASIA
While ANZ had an established presence in Asia in 2007,
our country representation was often small and based
on limited banking licences. This has required signifcant
investment to build banking capability, introduce new
technology, and to obtain regulatory approval for licences
to provide a wider range of services to customers.
Some highlights have included:
increasing our presence in China through local
incorporation in 2011 and opening new outlets and
branches in Beijing, Shanghai, Guangzhou and Chongqing,
a Rural Bank in Liangping and an operations centre in
Chengdu. Total staf numbers have now reached 700
compared to 100 in 2007. We also have two partnership
investments with Shanghai Rural Commercial Bank and
the Bank of Tianjin
growing to become one of the largest international banks
in Indonesia with 1,100 people working in 28 branches.
This compares to just two branches and 150 people in
2007. We have also increased our strategic investment in
PT Panin Bank to 39%up from 30%in 2007
expanding in the Philippines by obtaining a universal
banking licence and establishing an operations centre in
Manila. We also have a successful credit card joint venture
with Metro Bank
locally incorporating in Vietnam, paving the way to
expanding the branch network and services with
750 employees now in 11 outlets
re-commencing operations in India with the opening of a
branch in Mumbai while also continuing to invest in ANZs
operations and technology centre in Bangalore where we
have 5,600 staf compared to around 1,800 in 2007.
ANZS SUPER REGIONAL STRATEGY:
A FIVE-YEAR PROGRESS REPORT
11 10
ANZ HAS OVER 2.6 MILLION
CUSTOMERS IN ASIA PACIFIC
SUPPORTED BY AROUND
8,200 EMPLOYEES AND 100
BRANCHES AND POINTS
OFREPRESENTATION.
We have also seen growth in other countries in Asia, for
example in Japan and in Korea. In Taiwan we now have
1,700 employees working in 18 branches. In our two
regional commercial hubs, in Hong Kong we employ around
1,100 people up from 30 in 2007, and in Singapore we
employ 2,000 people up from 150 in 2007. We also have an
important partnership with Malaysias AmBank in which we
hold a 24%stake, up from 19%in 2007.
Throughout our international network, including the Pacifc,
our expansion has been underpinned by a concerted
investment in upgrading premises to the standard of an
international bank and to accommodate larger numbers
of staf. This includes new signature ofces in Singapore,
Hong Kong, Shanghai and Port Moresby as well as
investments in upgrading branches throughout the region.
The end result is that ANZ has built a signifcant business
in Asia Pacifc with 2.6 million customers up from 925,000
in 2007. Our customers in Asia are supported by 8,200
employees, and 100 branches and points of representation
compared to just 30 in 2007. This has seen ANZ emerge as
a leading international bank in the region. For example, in
2012 ANZ was ranked as a top fve Corporate Bank in Asia
by Greenwich Associates; fve years ago ANZ ranked outside
the top 20.
STRENGTHENING AUSTRALIA, NEW ZEALAND
AND THE PACIFIC
A key element of ANZs strategy is continuing to strengthen
our position in Australia, New Zealand and the Pacifc.
In Australia our focus has been on growth in traditional
banking in retail deposits, mortgages and commercial
banking as well as wealth solutions.
In addition to growing in key segments, our super regional
strategy is seeing us build greater connectivity with our
network in Asia Pacifc. In Retail, ANZ is the bank of choice
for customers coming to Australia from the region, for
example, Asian students coming to Australia and mortgages
for ofshore Chinese residents. We have also leveraged
our regional network in Commercial where more than
two-thirds of our customers have connections to Asia.
In Institutional, we have focused on our strengths in
natural resources, agriculture, infrastructure and fnancial
institutions segments that are directly linked to Asias
growth. We have also seen substantial growth in the areas
we have invested in to support that strategy in foreign
exchange, trade and cash management.
ANZ has also upgraded its premises in Australia rationalising
ofces in Melbourne and opening a new 6-Star Green Star
global head ofce. New ofce premises have also opened in
Adelaide and Brisbane, and in Sydney we will move to new
premises in 2013.
To capitalise on the momentumin the Australian business,
a fve-year $1.5 billion investment programwas announced
in 2012 to upgrade ANZs distribution network, simplify
products and processes, provide customers with additional
mobile and fexible banking options, and initiatives to
support local communities.
In New Zealand, ANZ has a leading market position
across Retail, Wealth Commercial and Institutional with
a relationship with more than two million customers
around50%of New Zealanders.
Our focus has been on undertaking a major transformation
to simplify our business, reduce costs and improve the
banking experience for our customers. This has included a
transition to one management structure across both
the ANZ and The National Bank brands, one customer
approval process and one set of products. More recently we
have moved to one brand and one core banking system.
We have also renewed our focus on growth opportunities.
In Retail for example, we are connecting New Zealanders
travelling and migrating to Australia, the Pacifc and Asia,
and targeting growth in mortgages particularly in the
Auckland region. In Commercial and Institutional, we
have extended our market leadership by leveraging our
international network to support NewZealands export
sector, particularly in agriculture.
A $100 million investment will also be made over the
next two years to ensure ANZ has a well positioned and
attractive branch network for customers in current and
new communities. ANZs head ofce in Auckland is also
undergoing a major refurbishment.
In the Pacifc, ANZ provides banking services to 500,000
customers in 12 countries across retail, wealth, commercial
and institutional. Our focus has been on continuing to
support customers including opportunities associated
with growing trade and investment linkages with Australia,
NewZealand and Asia, and on operational efciency.
ADAPTING TO THE LOWER GROWTH ENVIRONMENT
While we have beencontinuingtobuildonour strengths in
our major domestic markets of Australia andNewZealand,
andexploitingthe growthopportunities inAsia, we have
recognisedthat the global economy will be weaker for some
time, withgrowthinbankingmore closely followinggrowthin
the economy.
The magnitude of the shift the banking industry is facing is
signifcant around the world and we are actively adapting
ANZ to this environment. Loan growth is lower and funding
costs are higher. At the same time, increased regulation and
growth in our business means we now hold almost twice as
much capital as we did in 2007.
The implication is that now and for the foreseeable future,
we need a much greater emphasis on productivity and on
capital efciency. This means:
more actively managing capital across our portfolio of
businesses so we continue to build out our super regional
strategy in the most capital-efcient way
re-engineering the way we operate to drive a
long-term, sustainable cost advantage particularly by
using the fexibility provided by our operations and
technologyhubs.
DELIVERING ON OUR PROMISES
ANZs super regional strategy is clear, consistent and aligned
to the economic opportunity in the Asia Pacifc region.
Over the past fve years we have dramatically transformed
ANZ, creating a business portfolio diversifed by geography,
by business and by industry focus. It provides us with options
and choices to deliver diferentiated revenue growth
choices that are not available with a domestic-only strategy.
Since 2007, this transformation has seen ANZ move from
being a largely domestic bank to an integrated and growing,
regionally focused international bank that is increasingly
delivering diferentiated value and performance to
shareholders, customers, staf and the community.
>
13 12
AUSTRALIA
Across ANZs Australian Retail and Commercial businesses,
we serve approximately six million customers through our
network of around 800 branches, 115 business centres, our
24-hour contact centre, 2,700 ATMs and leading online and
mobile banking applications.
We are focused on making it easier for our customers to
progress by understanding their goals, and by leveraging
the local and international connectivity of ANZs network.
Australia is ANZs largest market and in 2012 we announced
a fve-year $1.5 billion investment program to make it
easier for our customers to deal with us and easier for our
people to meet our customers needs and the communitys
expectations.
BUSINESS HIGHLIGHTS
Delivered a solid fnancial performance, with proft in
Retail up 4%and in Commercial up 5%.
Achieved above system growth in Housing Lending and
inHousehold Deposits
1
.
Grew Traditional Banking
2
market share to 13.7%over
the 12 months to August 2012.
Extended ANZs popular mobile banking application,
ANZgoMoney
TM
to Android devices. More than 780,000
users are now registered to use ANZ goMoney
TM
with over
30 million transactions valued at more than $17 billion
conducted in 2012.
Completed more than one million A-Z Reviews helping
retail customers and small businesses with their
fnancialgoals.
Acquired 30,000 new Commercial customers largely in
small business banking helping to deliver lending growth
of 9%and deposit growth of 9%.
Commenced providing Australian property mortgages to
Chinese nationals seeking to invest in Australian property.
Customers now able to apply for hardship assistance
online via anz.com.
Our progress with our customers, our people and in
our community contribution was also recognised by
aseries of awards.
Money magazines Bank of the Year and Home Lender
of the Year.
The Australian Financial Reviews Capital magazines
Business Bank of the Year.
Disability Employment Award and Indigenous
Employment Award at the inaugural Australian Human
Resources Institute Diversity Awards.
MoneySmart Week Outstanding Achievement award for
our research into fnancial literacy in Australia and for our
Saver Plus program.
1
APRA banking statistics.
2
Source: Roy Morgan Research: Aust Popn aged 14+, rolling
12 months, Trad Banking Consumer Market (Deposits, Cards
&Loans), Peers: CBA (excl Bankwest), NAB, Westpac
(excl Bank of Melbourne & St George).
REGIONAL PRESENCE AND
SECTOR EXPERTISE
Remondis is one of the worlds leading water and
environmental services companies and this year selected
ANZ to deliver all its banking services across Australia and
New Zealand.
Headquartered in Germany, Remondis promotes the
economic and efcient use of natural resources to over
20 million individuals and thousands of companies
around the world. Such services include water supply and
water production, recovery of raw materials from waste,
innovative recycling products and alternative forms of
energy production. ANZs extensive network, spanning
Germany, Australia, New Zealand and the Asia Pacifc region
is well aligned to Remondis own business activities and
future plans.
Remondis Australia Chief Financial Ofcer David Cohen:
ANZ showed Remondis that it could quickly respond to
our needs, delivering banking facilities that supported our
operations across Australia and New Zealand. Moreover,
the bank had a deep understanding of our sector and
showed our management insights and expertise to
deliver sophisticated solutions that support our own
growthagenda.
CASE
STUDY
Australia
PHILIP CHRONICAN
Chief Executive Ofcer, Australia
AUSTRALI A
DI VI SI ONAL PERFORMANCE
Financial Performance
#
($m) 2012 2011 Movt%
Operating income 7,118 6,967 2%
Operating expenses (2,893) (2,836) 2%
Proft before credit impairment
and income tax
4,225 4,131 2%
Provision for credit impairment (666) (719) -7%
Proft before income tax 3,559 3,412 4%
Income tax expense and
non-controlling interest
(1,067) (1,022) 4%
Proft after tax 2,492 2,390 4%
Total assets 247,531 231,113 7%
Contribution to group earnings 41% 42%
Non-Financial Performance
##
2012 2011
Retail Customer Satisfaction
(source: Roy Morgan Research
Main Financial Institution)
76% 80%
Total employees (FTE)* 13,982 14,635
Employee engagement 70% 72%
Total Women in Management
1
42.9% 43%
Volunteering hours
2
33,534 43,560
Community investment
2
($m) 9.5 11.8
GHG emissions
3
(tonnes CO
2
-e) 163,906 166,311
4
Paper
5
(tonnes per FTE) 0.16 0.17
#
Underlying proft is adjusted for non-core items that are not part of the normal ongoing operations of the Group, including one-of gains
and losses, non-continuing businesses, timing diferences on economic hedges and acquisition-related costs.
##
Customer and employee
data reported by Division, environmental data reported by geography. * FTE excludes staf on special leave including leave without pay,
parental leave and long-term sick leave.
1
Women in management is calculated using a head count of active employees and includes staf
working for and being paid by ANZ.
2
Calculated according to the London Benchmarking Group methodology and excludes foregone
revenue.
3
Pending external verifcation. Includes Scope 1 and 2 emissions, developed in accordance with NGERS. A detailed GHG profle
(Scope 1, 2 and 3) and our full environmental report will be available on anz.com.
4
Figure updated from 166,756 as reported last year due
to updates of estimates to actual fgure
5
Pending external verifcation, includes both ofce and print (customer) paper.
>
Remondis Australia
15 14
INTERNATIONAL &
INSTITUTIONAL BANKING
BUSINESS PROFILE
International and Institutional Banking has a global focus
on large multi-national companies and Institutions with
sophisticated needs, along with a fast-growing Commercial
business and a Retail business serving afuent and
emerging afuent customers in Asia.
The division is spearheading ANZs ambition to be a super
regional bank with a growing presence and capability
across Australia, New Zealand and 28 markets in Asia Pacifc,
Europe and America (APEA). We now serve more than
2.6 million Institutional, Commercial and Retail customers.
Our goals are to help deliver on ANZs aspiration to source
25 to 30%of Group revenue from APEA by 2017, and to
continue to grow our Institutional business in Australia and
New Zealand.
BUSINESS HIGHLIGHTS
Delivered a sound fnancial performance with proft up 3%.
Global Markets continued its strategy to grow customer
sales with revenue up 14%.
Received a retail Renminbi (RMB) licence becoming
the frst Australian bank to ofer a range of RMB-related
products and services to retail customers in China.
Invested a further $300 million in our locally incorporated
subsidiary in China with seven outlets in Beijing, Shanghai,
Chongqing and Guangzhou.
Donated 75,000 Fiji Dollars to the Fiji Red Cross, The Prime
Ministers Flood Relief Appeal and local charities to support
those afected by devastating foods in March 2012.
Delivered the MoneyMinded fnancial literacy program in
Papua New Guinea, Fiji, American Samoa and Cook Islands,
while establishing pilot programs in India, Vietnam,
Indonesia, Hong Kong, Solomon Islands, Timor Leste,
Vanuatu and Kiribati.
Opened our frst street-level branch in Hong Kong in
one of the citys busiest retail and commercial districts.
The fagship Kowloon branch supports the banking needs
of Retail and Commercial customers.
ANZ Transactive is a web-based cash management
platform for Institutional and Commercial customers.
This product has now been deployed into Australia,
NewZealand, Singapore, Hong Kong, Japan and the
Pacifc. Deployment into remaining markets will be
fnalised by the end of 2013.
The continued growth of International and Institutional
Banking is based on a signifcant commitment to building
customer relationships. In 2012 we:
retained the No. 1 Relationship Strength Index position
for Lead Relationships in the 2012 Peter Lee Associates
Large Corporate and Institutional Relationship Banking in
Australia Study
ranked as a top fve corporate bank in Asia by Greenwich
Associates. Four years ago, ANZ ranked outside the top 20
were voted the No. 2 foreign exchange provider in Asia
Pacifc in Asiamoney magazines 2012 poll. Last year, ANZ
ranked outside the top 10
ranked the No. 1 mandated lead arranger for syndicated
loans in Asia Pacifc (excluding Japan) league tables by
Thomson Reuters.
ALEX THURSBY
Chief Executive Ofcer, International and Institutional Banking
EUROPE AMERI CA PACI FI C ASI A
OUR SUPER REGIONAL
STRATEGY AT WORK
International and Institutional Banking delivered its frst
Chinese Yuan currency transaction for a major natural
resources customer in December 2011, with a frst of its kind
Yuan-denominated and US dollar-hedged supply contract
for Fortescue Metals Group.
The hedge contract enabled Fortescue to pay US$93 million
worth of Yuan for Chinese manufactured rail transport cars
as part of a broader expansion of its Pilbara operations in
Western Australia.
This was the frst time Fortescue signed an underlying
contract in Yuan and then hedged this in US dollars. Settling
trade transactions in Yuan can provide benefts for importers
and exporters with trade ties to China. These range from
added convenience, cost and pricing advantages, as well as
relationship benefts for both parties. The wider use of the
Yuan in ofshore markets also provides hedging fexibility
for companies as their Yuan exposures can be managed on
aglobal basis.
ANZ has a designated Chinese currency team based
in Hong Kong to support its customers and help them
capture opportunities as the internationalisation of the
Yuan for trade settlement purposes accelerates, and is well
positioned to expand its currency and hedging services with
some of the worlds biggest natural resources companies.
CASE
STUDY
International &
Institutional Banking
#
##
data reported by Division. * FTE excludes staf on special leave including leave without pay, parental leave and long-term sickleave.
1
Women in management is calculated using a head count of active employees and includes staf working for and being paid by ANZ.
2
Calculated according to the London Benchmarking Group methodology and excludes foregone revenue.
#
($m) 2012 2011 Movt%
Operating expenses (2,933) (2,757) 6%
and income tax
3,659 3,433 7%
Provision for credit impairment (427) (293) 46%
Proft before income tax 3,232 3,140 3%
(860) (839) 3%
Proft after tax 2,372 2,301 3%
Total assets 276,306 259,397 7%
##
2012 2011
Institutional Relationship Strength
Index ranking
(source: Peter Lee Associates Large Corporate
and Institutional Relationship Banking
Report 2012, Australia. Ranked against top
four competitors.)
2 1
Employee engagement 70% N/A
1
37% 30%
Volunteering hours
2
7,748 8,434
2
($m) 0.67 0.85
>
Fortescue Rail
17 16
NEW ZEALAND
BUSINESS PROFILE
ANZ is New Zealands largest bank with a relationship
with more than two million customers around 50%of
New Zealanders.
2012 has been a year of signifcant change for ANZ in
NewZealand. In September, we announced that after
almost 10 years of operating ANZ and The National Bank
in New Zealand, the two brands would progressively be
brought together as ANZ.
This major change will combine the best of both banks
ANZs strength and presence across Asia Pacifc and The
National Banks reputation for customer service. It will be
supported by a $100 million investment over the next two
years to ensure ANZ has a well positioned and attractive
branch network in current and new communities.
We have also continued to focus on making things simpler
for customers and driving efciencies by streamlining our
head ofce management and processes. This has included
completing the transition to one management structure
across the ANZ and The National Bank, one customer
approvals process and moving to one set of products and
one, The National Banks, technology system.
BUSINESS HIGHLIGHTS
Delivered a good fnancial performance, with proft
up 12%.
Achieved Retail market share gains, particularly in
mortgages in the larger and growing Auckland region,
with around one in three New Zealanders now choosing
ANZ for their home loan.
Made signifcant progress with a simplifcation program
to reduce complexity for our customers and contribute
toimproved efciency.
Completed preparations for the adoption of a single core
banking system which was completed in October 2012.
Established a $120 million start-up package to help
young farmers.
Launched a mobile banking application for Android
smartphones, building on the success of the ANZ
goMoney
TM
banking application which, together, have
seen 100,000 customers perform an average $2.5 million
transactions amonth.
Continued to support the New Zealand community
including sponsorship of the New Zealand Olympic team
at London 2012.
Committed up to $500 million in new discounted
mortgage lending to customers impacted by the
Canterbury earthquakes.
Launched a New Zealand MoneyMinded pilot program
teaching savings and money management skills.
Our progress in supporting our customers was recognised
through a number of awards during 2012.
OnePath was named the Morningstar Fund Manager
of the Year and KiwiSaver Manager of the Year.
Our Institutional business received the Institute of Finance
Professionals New Zealand Bank of the Year Award.
The National Bank was named the Best Agribusiness Bank
New Zealand by CANSTAR.
DAVID HISCO
Chief Executive Ofcer, New Zealand
NEW ZEALAND SIMPLIFICATION
PROJECT: BUILDING
NEW ZEALANDS BEST BANK
ANZ NewZealand, which traces its roots back to early
European settlement in 1840, bought The National Bank in
2003 and ran both brands for almost 10 years. FromOctober
2012 we started to combine the brands into one. ANZ.
This was a logical and important next step after
progressively reducing duplication and simplifying our
NewZealand business by creating one management
structure, one approval process for customers, one set of
products and one technology platform.
We use the ANZ brand in 32 markets globally and the
licence agreement for the National Bank logo expires in
2014, so it makes sense for us to make this decision. We want
to build New Zealands best bank and this will help us do it,
said CEO New Zealand, David Hisco.
The move to one brand further strengthens ANZ in the
NewZealand market, making it easier for the bank to
connect customers across its global network.
ANZ is New Zealands largest fnancial services provider with
more branches and ATMs than any other bank and is the
countrys frst major bank to ofer trade deals in Renminbi
making it easier for New Zealand frms to do business
withChina.
CASE
STUDY
New Zealand
#
##
data reported by Division, environmental data reported by geography. *FTE excludes staf on special leave including leave without pay,
parental leave and long-term sick leave.
1
Women in management is calculated using a head count of active employees and includes staf
working for and being paid by ANZ.
2
Calculated according to the London Benchmarking Group methodology and excludes foregone
revenue.
3
Pending external verifcation. Includes Scope 1 and 2 emissions, developed in accordance with NGERS. A detailed GHG profle
(Scope 1, 2 and 3) and our full environmental report is available on anz.com.
4
Pending external verifcation, includes both ofce and print
(customer) paper.
#
($m) 2012 2011 Movt%
Operating expenses (921) (906) 2%
and income tax
1,176 1,111 6%
Proft before income tax 1,028 945 9%
(285) (283) 1%
Proft after tax 743 662 12%
Total assets 71,816 69,072 4%
##
2012 2011
Retail customer satisfaction
ANZ (source: Nielsen Consumer
Finance Monitor)
89% 89%
Employee engagement 74% 70%
1
34.6% 34.8%
Volunteering hours
2
18,317 16,720
2
($m) 2.73 2.46
GHG emissions
3
(tonnes CO
2
-e) 14,009 11,164
Paper
4
(tonnes per FTE) 0.16 0.13
NEW ZEALAND
>
ANZ and The National Bank combine
19 18
NEW ZEALAND AUSTRALI A ASI A
GLOBAL WEALTH AND
PRIVATE BANKING
BUSINESS PROFILE
In March 2012 the Global Wealth and Private Banking
Division was created to strengthen focus on the signifcant
opportunity the Wealth market ofers ANZ.
In responding to this opportunity the Division is building
new and more distinctive ways of engaging with our
customers across Australia, New Zealand and the Asia
Pacifc. We are also leveraging our global scale and
expertise to improve efciency and deliver a stronger
customer experience across all markets.
Our aim is to help ANZ customers progress by providing
compelling investment, superannuation and insurance
solutions together with quality advice tailored to their
specifc needs. Customers can access ANZs wealth solutions
through teams of highly qualifed fnancial experts,
innovative online and mobile platforms and through ANZs
broader distribution network.
BUSINESS HIGHLIGHTS
Global Wealth & Private Banking proft was fat in 2012,
however performance improved signifcantly in the
second half refecting a strong uplift in insurance and
investment earnings and a decline in costs as productivity
benefts emerged.
The New Zealand business continues to strengthen with
FUMgrowth for KiwiSaver product up 39%.
In Australia our market leading insurance business
increased sales by 11%with new business margins also
trending upwards.
Launched simple wealth products and invested in
training of staf across Australian bank channels to
give customers easier access to simple insurance and
superannuationsolutions.
Experienced solid growth in Private Banking with FUM
infows up 14%in Asia and increased levels of client
satisfaction in New Zealand.
Industryawards.
- 2012 Money Management/DEXX&R Adviser Choice
Risk Awards: Named Risk Company of the Year for
the third year running and awarded gold in the Term
and Total & Permanent Disability and Risk Trauma
Insurance categories.
- Money Magazines 2012Best of the Best awards:
Awarded Best Featured Pension for OneAnswer Frontier.
- New Zealand Morningstar Awards 2012: Our specialist
investment manager OnePath was named New Zealand
Fund Manager of Year and was also the KiwiSaver
Category Winner.
JOYCE PHILLIPS
Chief Executive Ofcer, Global Wealth and Private Banking
#
Underlying proft is adjusted for non-core items that are not part of the normal ongoing operations of the Group including one-of gains and
losses, non-continuing businesses, timing diferences on economic hedges and acquisition related costs.
##
Customer and employee data
reported by Division.
###
Global Wealth and Private Banking is a Division newly formed in March 2012. The 2012 numbers therefore refect
six months performance. 2011 performance data is not available.
*
FTE excludes staf on special leave including leave without pay, parental
leave and long-term sick leave.
1
Women in management is calculated using headcount of active employees and includes staf working for
and being paid by ANZ.
2
Calculated according to the London Benchmarking Group methodology and excludes forgone revenue.
#
($m) 2012 2011 Movt%
and income tax
621 632 -2%
Provision for credit impairment (4) 8 Large
Proft before income tax 617 640 -4%
(166) (183) -9%
Proft after tax 451 457 -1%
GIVING BACK TO THE
AUSTRALIAN COMMUNITY
FOR OVER 130 YEARS
ANZs Global Wealth and Private Banking business has been
assisting individuals, charitable trusts and foundations to give
back to the community for over 130 years.
We provide guidance, governance, investment management,
estate planning, and charitable giving structures and strategies
to help our clients fulfl their philanthropic ambitions.
In 2012 we managed $1.3 billion in charitable funds invested
for community beneft in Australia and generated $75 million
for distribution tocharity.
ANZs commitment to inclusivity is also refected in the
community involvement activities facilitated through a
partnership with the Cerebral Palsy Alliance, a relationship
which spans over two decades.
This year, we funded the Emerge Mentoring Program, a
year-long leadership and work readiness program which
matches ANZ mentors with young adults with cerebral
palsy. We also partnered with Alliance families to help them
complete the four-kilometre Family Run at the 2012 Sydney
Running Festival, continuing a six-year tradition. Prior to
this, we funded Ignition Mentoring aprogram supporting
teenagers with cerebral palsy build their confdence,
self-esteem andresilience.
These programs support ANZs volunteering policy, which
provides staf with one day of paid volunteer leave each year.
CASE
STUDY
Global Wealth &
Private Banking
>
Emerge Mentoring Program
##
2012
###
2011
###
Employee engagement 58%
1
38.9%
Volunteering hours
2
2,597
2
($m) 0.48
21 20
WELLI NGTON MELBOURNE SUVA MANI LA BANGALORE CHENGDU
OUR REGIONAL NETWORK
BENEFITS EMPLOYEES
ANDCUSTOMERS
Our expanding network of operations throughout the Asia
Pacifc region is helping us to efectively and consistently
promote the health and wellbeing of our employees.
In 2012 we further strengthened our programs, promoting
the health, safety and wellbeing of our employees across
our regional hubs in Bangalore, Chengdu, Manila and Suva.
Integration across the four hubs was a key focus, enabling
the development of common objectives and targets, and
encouraging sharing of good practices.
Our health, safety and wellbeing programs had reached
a mature stage of implementation in Bangalore, closely
followed by Manila, which assisted the 2012 rollout in
Chengdu. Increased focus on encouraging hazard and
incident reporting across the hubs has improved employee
awareness of health and safety and resulted in a greater
ability to manage risks to our people. Our consistent
approaches to promoting health and wellbeing are also
tailored for local conditions. In 2012 all hubs held education
sessions on diabetes, heart health and asthma. Locally,
education sessions were held on tuberculosis in India,
on malaria and dengue fever prevention in Suva, and on
common illnesses associated with fooding events in Manila.
CASE
STUDY
Global Technology,
Services & Operations
GLOBAL TECHNOLOGY, SERVICES &
OPERATIONS
BUSINESS PROFILE
Global Technology, Services & Operations is ANZs business
support division responsible for the delivery of technology,
shared services and operations through our operating hubs
in Melbourne, Wellington, Bangalore, Manila, Chengdu
and Suva. The division is also responsible for major
transformation projects and ANZs property and facilities.
The division was formed during 2012 to provide an
integrated approach to ANZs business transformation
agenda and to enable and accelerate the delivery of the
Groups super regional strategy. This includes a focus on
rapid productivity improvements and delivering value to
our customers.
BUSINESS HIGHLIGHTS
Technology
Continued strategic progress in aligning and reshaping
technology to support our super regional strategy as part
of ANZs Technology Roadmap. This includes upgrading
legacy systems, new system delivery to support growth,
and digital innovations including ANZ Transactive and
ANZ goMoney
TM
.
Service incidents decreased signifcantly, down 26%
during 2012 providing increasingly seamless service to
our customers.
Operating costs remained fat with the division absorbing
volume growth through efciencies and improved
resource use.
Services
Improved efciency primarily through improvements to
sourcing and property management.
Supported ANZs sustainability strategy by maintaining
our global carbon neutrality status, signifcant reductions
in paper use through process improvements and the
introduction of managed print services, and a focus on
sustainable global property solutions.
For example, our Singapore ofces are located in
the Ocean Financial Centre the frst high-rise ofce
development to receive the Platinum Green Mark from
Singapores Building and ConstructionAuthority.
ANZs online environmental reporting system was
extended to 32 countries, improving our environmental
performance management.
Operations
Continued standardising processes to better serve our
customers and reduce operational costs. For example,
implementation of automated case management and
increased system integration for ANZTravel Cards.
Connecting our hubs in Bangalore, Manila, Chengdu and
Suva under the umbrella of Group Hubs.
Opening a second campus in Manila and moving to new
larger premises in Chengdu to support future growth
andexpansion.
Demonstrating business continuity planning and risk
management, our Bangalore Hub held a successful
bank-wide business continuity simulation exercise.
ALISTAIR CURRIE
Group Chief Operating Ofcer
#
and losses, non-continuing businesses, timing diferences on economic hedges and acquisition-related costs. *Financial performance also
includes Group Centre and shareholder function activities.
##
Customer and employee data reported by Division.
###
GlobalTechnology
Services & Operations is a Division newly formed in March 2012. 2011 non-fnancial performance data is not available. * FTE excludes staf
on special leave including leave without pay, parental leave and long-term sick leave.
1
Women in management is calculated using a head
count of active employees and includes staf working for and being paid by ANZ.
2
Calculated according to the London Benchmarking
Group methodology and excludes foregone revenue.
#
* ($m) 2012 2011 Movt%
Operating income 294 153 92%
and income tax
(124) (213) -42%
Proft before income tax (125) (254) -51%
78 96 -19%
Proft after tax (47) (158) -70%
>
Chengdu Hub
##
2012
###
2011
###
Employee engagement 69%
1
31.3%
Volunteering hours
2
24,562
2
($m) 1.52
23 22
CORPORATE RESPONSI BI LI TY
DELIVERING AGAINST
TARGETS
OUR CORPORATE GOVERNANCE STRUCTURE ENSURES OVERSIGHT OF OUR BUSINESS-WIDE
FINANCIAL AND NON-FINANCIAL TARGETS, ENSURING CORPORATE RESPONSIBILITY
PERFORMANCE IS MONITORED THROUGHOUT ANZ.
LEADERSHIP FROM THE TOP
Our fve Board Committees (Audit, Governance, Human
Resources, Risk and Technology) meet throughout the
year. The Governance Committee is responsible for
oversight of our Corporate Responsibility strategy, targets
and performance, and our reporting.
Details about the Board, Board-related charters, the
Group Codes of Conduct and Ethics, the Conduct
and Ethics Policy Framework (including Fraud Policy,
Anti-Bribery and Anti-Corruption Policy, Whistleblower
Protection Policy, Equal Opportunity, Bullying and
Harrassment Policy, Health and Safety Policy), the
ANZConstitution, ANZ Shareholder Charter and other
related items can be found at anz.com/governance.
ALIGNING CORPORATE RESPONSIBILITY AND
DIVERSITY PERFORMANCE
This year, we refned our executive oversight of corporate
responsibility (CR), combining our Corporate Responsibility
and our Diversity committees to form a single Corporate
Responsibility and Diversity Committee (CRD). This further
aligns these two inherently connected areas and refects
our view that to be a super regional organisation we need
to profoundly embrace diversity. The CRD Committee is
chaired by our Chief Executive Ofcer and includes two
additional members of Management Board, and senior
representatives from ANZs business divisions.
Responsibilities of the CRD Committee include providing
strategic leadership on our Group-wide CR and diversity
strategies, priorities and targets and identifying,
overseeing and monitoring current and emerging CR
risks and opportunities. The CRD Committee reports
on progress in achieving the Groups CR and diversity
objectives to Management Board and the ANZ Board
Governance Committee.
We further increase our accountability by setting public
targets in areas in which we have identifed that we can use
our skills and resources to deliver business performance
while making a signifcant contribution to society.
VALUING INDIVIDUAL PERFORMANCE
Employees in the bank have diferent roles and expertise,
but everyone has a responsibility to make decisions that
are balanced and ethical, being conscious of the potential
economic, social and environmental impacts of their actions.
Each year, all employees are required to complete online
training under theANZ essentials risk accreditation
framework covering topics such as anti-money laundering,
fraud, corruption and bribery, equal opportunity, and
health and safety. Our welcome to ANZ module provides
an overview of our CR framework and tests new joiners on
applying the framework in practice.
In 2012 we amended our approach to business unit and
individual performance planning and target setting so that
our fve core Values and Behaviours will be more deeply
embedded in creating plans, monitoring and rewarding
performance against targets.
PUBLIC REPORTING
Our reporting takes place throughout the year with some
key dates on which we publish specifc information.
Since 2010 we have combined the Shareholder Review
and Corporate Responsibility Review as our performance is
measured by both our fnancial and non-fnancial results.
Our full Corporate Responsibility Report is published on our
website anz.com. That report contains more in-depth CR
information about our strategy, targets and performance. The
content is prepared in accordance with the Global Reporting
Initiative (GRI) guidelines, including the Financial Services
Sector Supplement. It refects our Global Compact Report on
Progress and our application of the London Benchmarking
Group Measurement methodology. Our website also
contains our external reporting Assurance Statement.
In May, we release our Interim Corporate Responsibility
Report detailing our mid-year progress.
We inform stakeholders of our activities and progress
throughout the year via our regular Corporate
Responsibility E-bulletin.
EXTERNAL ASSURANCE
Our annual Corporate Responsibility Report has been
externally assured by Corporate Citizenship in keeping
with the International Standard on Assurance Engagement
(ISAE 3000) and the Accountability Assurance Standard
(AA1000AS-2008).
Both our full Corporate Responsibility Report and Corporate
Citizenships assurance statement, detailing their review of
our performance and reporting, is available at anz.com/cr.
Our Annual Report and Financial Statements are externally
assured by KPMG.
ACHI EVED PERFORMANCE KEY PARTI ALLY ACHI EVED OR I N PROGRESS DI D NOT ACHI EVE
URBAN SUSTAINABILITY
Evaluate the pilot of our revised Environmental Management System and expand to cover two
material markets in our Asian business.
Work towards achieving our three-year environmental targets in Australia and New Zealand,
including greenhouse gas, premises energy, commercial waste, water, paper and air travel.
FINANCIAL CAPABILITY
Reach30,000 people fromlow-income anddisadvantagedbackgrounds withour MoneyMinded
fnancial capability program.
Report publicly andengage key stakeholders instrategic review.
Enrol 14,250 people inour Saver Plus programacross Australia by 2014.
RESPONSIBLE PRACTICES
Improve customer satisfaction and achieve the No.1 or 2 position amongst major banks for our
retail, commercial and Institutional businesses.
In Australia, retained No. 1 Relationship Strength Index position for Lead Relationships in the
2012 Peter Lee Associates Large Corporate and Institute Relationship Banking Research.
Customer satisfaction in Retail and Commercial Banking declined in the second half of the year,
due to a number of issues including adverse publicity regarding interest rate decisions. Steps are
in place to improve our customer satisfaction and we are seeing positive momentum.
Resolve 90%of customer complaints within fve business days.
Develop and pilot a program to improve staf understanding of customers in fnancial difculty
to aid early identifcation of and assistance to afected customers.
Reduce Lost Time Injury Frequency Rate (LTIFR) in Australia and New Zealand by between 510%
and continue implementation of our safety and wellbeing programs globally.
Implement our Responsible Sourcing Program with a focus on our top 10 highest impact categories
and publicly report the progress of our supplier education and auditing strategy.
Publicly report progress on the implementation, application of and training in our sensitive sector
lending policies and human rights statement.
Increase our lending to lower carbon emission power generation (i.e. renewables and gas)
by 1520%by 2020
1
.
EDUCATION AND EMPLOYMENT OPPORTUNITIES
Reach at least 40%representation of women in management, and achieve gender balance and
greater cultural diversity in our key recruitment, talent development and learning programs.
Improve employee engagement, including perceptions of values-based leadership.
Provide 230 positions through our traineeships, graduate program and permanent employment
to people from disadvantaged backgrounds and enhance purchasing criteria to develop more
relationships with companies which employ and support people with disability.
Advance the role of women in society through engagement on key public policy issues,
including advocacy for more accessible, afordable and fexible childcare in Australia.
1
Target applies to Project and Structured Finance transactions.
KEY GOALS
WE SET OUT
TO ACHIEVE
IN 2012
BRIDGING URBAN AND RURAL DIVIDES
Implement mobile phone banking in Papua NewGuinea, Vanuatu, Samoa and Solomon Islands in 2012,
then inTimor Leste in 2013.
Launch the Pacifc MoneyTransfer Card to enable cost-efective remittances and sign up 2,800 customers.
Context to our performance, targets achieved as well as missed, is given in our full Corporate Responsibility Report on anz.com/cr.
25 24
CORPORATE RESPONSI BI LI TY
RESPONSIBLE
PRACTICES
THE BANKING SECTOR REMAINS UNDER PUBLIC SCRUTINY. BANKS MUST WORK TO RESTORE
CREDIBILITY AND CONTRIBUTE TO STABLE FINANCIAL SYSTEMS. OUR RESPONSIBLE PRACTICES
ARE DESIGNED TO HELP MANAGE OUR OWN OPERATIONS AS WELL AS CONTRIBUTE TO THESE
BROADER OBJECTIVES.
RESPONSIBLE CORPORATE ACTIONS DEPEND
ON INDIVIDUALS
Our ability to compete today and sustain growth in the
future depends on employing highly skilled, motivated
people, equipped to make responsible decisions.
This year we continued to emphasise our Values and
Behaviours as central to our business strategy as we build a
business that delivers responsible growth and prosperity for
our customers, shareholders, people and communities.
PROMOTING RESPONSIBLE BEHAVIOURS
Banking is an industry with relatively light direct impacts
but we can be exposed to signifcant impacts through
the companies we fnance. We are committed to having
deep knowledge of our clients businesses, including
understanding the social and environmental impacts of
sectors and specifc operations that we bank.
We look to work with companies that operate at
internationally accepted and best-in-class standards. This
is particularly important as we expand in the fast-growing
Asia Pacifc economies, where accepted norms, government
oversight and regulation vary widely.
We seek to diferentiate ourselves, working with companies
that see value in achieving internationally accepted
standards and value a bank that partners with them to
achieve that goal.
In 2012, we piloted a new Sustainability Leadership Program
training course, aimed at staf in the International and
Institutional Business (IIB). This half-day course, delivered
in partnership with WWF-Australia, is designed to help staf
make more informed decisions, considering the social and
environmental contexts in which our clients operate.
The course emphasises the need to be alert to social and
environmental risks and opportunities in business and the
importance of understanding such issues to support our
clients and act as a partner of choice. We will nowimplement
the training across IIB and the Asia Pacifc region.
Almost 1,000 employees completed our online Social and
Environmental Risk training in 2012. This incorporates ANZs
Values and Behaviours, our sensitive sector policies and our
approach to human rights, as well as how and when staf
should identify and escalate potential issues.
We monitor our portfolio of existing and prospective clients
on a continuous basis through our Reputation Risk Radar.
Notable incidents and allegations inform regular Early Alert
Review meetings, which consider social, environmental and
governance, as well as credit risks.
Exceptionally, where clients are unwilling or unable to answer
our enquiries, the matter may be raised to our Reputation Risk
Committee. The ultimate decision for us is whether to exit a
relationship if a client is not prepared to operate responsibly.
Our preference is always to work with clients to remediate
matters. This is in ANZs commercial interests, as well as having
better long-term benefts for our clients and the communities
in which they operate.
NEW GUIDELINES AND UPDATING OUR APPROACH TO
HUMAN RIGHTS
To ensure relevance and good practice, we regularly review
our sensitive sector and associated policies, designed
to ensure social and environmental considerations are
incorporated into banking practices, particularly with regard
to high-impact industries.
In 2012, this led us to update our People and Communities
statement to refect the release of the United Nations Principles
on Business and Human Rights. Following enquiries from
external parties, including Socially Responsible Investor groups,
we made it clear that by publicly supporting the UNGlobal
Compact we acknowledge the United Nations Declaration of
Human Rights and the three other Conventions underpinning
the Compact.
Through our 2012 review, we identifed a need for a
Hydropower policy, supplementing our existing Water and
Energy policies. This policy was developed in consultation
with a range of internal and external stakeholders, including
clients, industry associations and non-governmental
organisations to ensure it balances the interests of our many
diferent constituents.
Further information on our sensitive sector policies and our
approach to human rights policies can be found at anz.com/cr.
PROMOTING RESPONSIBILITY IN OUR SUPPLY CHAIN
Our commitment to responsible practices across our business
means we support our suppliers in complying with all local
legal frameworks and to be considerate of the ethical, social
and environmental impacts on the communities where they
operate. Our requirements are published in our Supplier Code
of Practice and integrated into our standard contract terms.
In 2012 we worked with an NGO partner, BSR, to conduct
supplier forums in China and Indonesia, to help build
supplier capacity, understanding and support for our
Supplier Code of Practice. Suppliers worked in groups to
examine the relevance and value of ANZs approach to CR.
Session outputs are being used to inform our compliance
standards, development of strategies and partnerships to
minimise environmental impacts, and to optimise social
benefts across our supply chain.
We promoted internal support for Responsible Sourcing
by conducting staf workshops in Australia, New Zealand,
Singapore and Taiwan, increasing awareness and building
actions into the everyday work of our sourcing teams.
CLASS ACTION UPDATES
In September 2010, class action proceedings were
commenced against ANZ, claiming that some fees
charged on deposit and credit card accounts are penalties,
or alternatively, that the imposition of these fees was
unconscionable or unfair, and that the fees charged should
be repaid with interest.
ANZ is defending the claim. The courts have considered
and ruled on some preliminary matters but the case is at
an early stage.
IMF (Australia) Ltd, a publicly listed company that provides
funding for legal claims on a no-win, no-fee basis, is funding
the class action. IMF has also initiated similar class actions
against other major banks in Australia.
EMERGENCY RELIEF
Fortunately, this year did not witness the level of
humanitarian disasters that marked our Region in 2010
and 2011. However, there were still signifcant events
that afected our people and their communities.
Severe fooding in Western Fiji in early 2012 and in the
Philippines, particularly around Manila, in August resulted
in loss of life and caused disruptions to economies and our
operations. In both cases, local governments declared states
of emergency.
ANZ quickly launched Employee Financial Assistance Programs
for our staf, drawing on the successful programdeveloped for
ANZ stafimpacted by the 2010 Queensland foods.
The assistance packages included special leave arrangements
as well as fnancial grants for severely impacted staf. We
also provided support to communities in need, including
staf volunteering in the many areas where signifcant
clean-up and repair eforts were needed.
In addition to our direct assistance to employees, loan
repayment suspensions for customers and other foregone
costs, we contributed $0.6 million to supporting the
communities impacted by these events.
ANZs sustainable business practices, exceptional
risk and crisis management procedures and
its strong focus on sustainable investment
products have earned it the leading position in
the banking supersector. In addition to using
comprehensive social and environmental
screening tools for its credit assessment process,
it is actively engaged in fnancing renewable
energy and emission trading.
SAM SUSTAINABLE
ASSET MANAGEMENT
Scorers of Dow Jones
Sustainability Index
KEY GOALS
WE SET OUT
TO ACHIEVE
IN 2012

1
RESPONSIBLE PRACTICES
Improve customer satisfaction and achieve the No.1 or 2 position amongst major banks for our
retail, commercial and Institutional businesses.
In Australia, retained No. 1 Relationship Strength Index position for Lead Relationships in the
2012 Peter Lee Associates Large Corporate and Institute Relationship Banking Research.
Customer satisfaction in Retail and Commercial Banking declined in the second half of the year,
due to a number of issues including adverse publicity regarding interest rate decisions. Steps are
in place to improve our customer satisfaction and we are seeing positive momentum.
Resolve 90%of customer complaints within fve business days.
Develop and pilot a program to improve staf understanding of customers in fnancial difculty
to aid early identifcation of and assistance to afected customers.
Reduce Lost Time Injury Frequency Rate (LTIFR) in Australia and New Zealand by between 510%
and continue implementation of our safety and wellbeing programs globally.
Implement our Responsible Sourcing Program with a focus on our top 10 highest impact categories
and publicly report the progress of our supplier education and auditing strategy.
Publicly report progress on the implementation, application of and training in our sensitive sector
lending policies and human rights statement.
Increase our lending to lower carbon emission power generation (i.e. renewables and gas)
by 1520%by 2020
1
.
27 26
INTERCULTURAL CAPABILITY
Our business strategy means ANZs workforce will
increasingly be required to understand and support
customers within and across the Asia Pacifc region. In
building our workforce of the future, we have focused on
recruiting and developing inspiring, values-based leaders
and a diverse and inclusive team.
Around 73%of our top 181 executives have signifcant
international experience comprising a minimum of three to
fve years working outside their home country.
ANZs workforce represents in excess of 120 cultural
backgrounds, speaks more than 90 languages and follows
over 80 diferent religions. Networks, mentoring schemes
and a sister branch program, connect employees in Australia
and New Zealand with peers across Asia Pacifc. We also ofer
short-term secondments and promote culturally-focused
festivals to help our people develop relationships, build
customer insights and increase cross-border/divisional
customer referrals.
At a community level, our CEO heads AsiaLinks Asia Capable
Workplace strategy and our employees participate in their
Asia Literacy for Schools program in Australia. We are a
lead sponsor of the Diversity Council of Australia and the
Australian Governments inaugural research into cultural
diversity and capability of Australian Boards and businesses.
GENDER EQUALITY IN LEADERSHIP
Increasing the proportion of women at all levels of
management will enable ANZ to tap into a broader range
of talents, leadership styles and skill-sets to manage our
business and serve our customers.
This year we aimed to increase the representation of women in
management to 40%, however we remained steady at around
38%. While we did not achieve our overall goal, there was
progress at senior levels. Three women sit on our Management
Board while others lead major global businesses and key
countries in our growth strategy. In our Australia Division
women hold 43%of all management positions.
Developing a strong pipeline of senior female leaders is a
priority. We provide opportunities for high potential women
to gain experience in key banking roles, necessary for future
careers as senior leaders in the industry. Women represent
44%of participants in our Generalist Banker accelerated
development program; 53%of our upcoming 2013 graduate
intake; and 46%of participants in our Leadership Pathway
development programs.
We work at a community level with organisations such as
Chief Executive Women; the Australian Sex Discrimination
Commissioners Male Champions for Change Initiative; and
Melbourne Business School to promote gender equality in
business, better understanding the conditions and culture
that enable women to thrive in leadership.
In March, our approach and progress in creating a more
gender balanced business was recognised through our
citation as Employer of Choice for Women for the eighth
time from the Equal Opportunity in the Workplace Agency
of Australia (EOWA).
RECRUITING AND DEVELOPING EMPLOYEES FROM
DISADVANTAGED COMMUNITIES
Education and employment enhance livelihoods, and are
high on the development agendas of governments across
our Region. As a large employer, our employment decisions
CREATING EDUCATION AND
EMPLOYMENT OPPORTUNITIES
THE SUCCESS OF OUR SUPER REGIONAL STRATEGY DEPENDS ON US HAVING AN EXPERIENCED,
ETHICAL AND ENGAGED WORKFORCE, WITH EMPLOYEES WHO DEEPLY UNDERSTAND AND CONNECT
WITH THEIR COLLEAGUES, OUR CUSTOMERS AND COMMUNITIES, WHEREVER WE OPERATE.
can signifcantly beneft the lives of disadvantaged and
under-represented individuals, including people with
disability, and among Indigenous and refugee communities.
Since we introduced our disability employment program in
2008, ANZ has employed 131 people with a self-disclosed
disability, with a retention rate of 74%. In 2012, we
employed 38 people with disability 13 in Australia, 15 in
India, two in the Philippines and eight in New Zealand.
Our Abilities teamhelps us make banking easier for customers.
For example, our vision-impaired teamenhanced our
award-winning ANZ goMoneyapp for iPhone, introducing
voice-overs and zooms to ensure ease and accessibility.
Since 2003 we have provided traineeships and employment
to more than 650 Indigenous Australians. This year, we
employed an additional 79 Indigenous trainees in our
retail network; 23 Indigenous candidates were successfully
recruited to full-time positions and 56 recruited via our
Indigenous trainee program.
In 2012, ANZ was recognised by the Australian Human
Resources Institute (AHRI) for excellence in the employment
of people with disability and Indigenous Australians.
ANZ participates inThe Brotherhood of St Laurences Given the
Chance refugee employment programs, providing refugees
in Australia with skills and experience to enter the workforce.
So far, 56 refugees have taken part in areas including Retail
Products, Operations, Australian Branch Network, and the
Australian Call Centre with a retention rate of 73%.
SUPPORTING EMPLOYEES THROUGH CHANGE
We experienced challenges meeting some of our
employment targets this year due to economic conditions,
low employment growth and restructures within our
business, which meant we prioritised redeploying existing
employees into available roles. These circumstances saw
the loss of around 1000 full-time roles, largely in our
Australian business.
A comprehensive program was put in place to
support afected employees. They received assistance
fnding alternative roles within ANZ through an active
redeployment program, or outside of ANZ through
outplacement services, which provide career coaching,
job search training and professional support services.
Inaddition, our New Career Training Fund ofered grants
of up to $10,000, enabling those impacted to retrain for
careers outside banking.
INSPIRING AND ENGAGING OUR TEAM
Amidst these challenging conditions, our annual My Voice
survey showed employee engagement levels steady at
around 70% consistent with the banking sector average.
84%of employees feel their manager demonstrates through
action the importance of customer service; 79%believe
ANZ is creating a workforce that is open and accepting of
individual diference; 76%believe their opinions count;
and 80%believe their manager enables them to efectively
manage their work and life commitments. Engagement
amongst women overall is equal to men; while engagement
among our most senior women increased from 75%to 82%.
Initiatives are in place to address the survey fndings and
achieve our best-practice employee engagement aims.
Initiatives include a group-wide program to help employees
deeply understand our super regional strategy and how
their work contributes to our goals, alongside continual
reinforcement of ANZs Values and Behaviours.
WOMEN IN MANAGEMENT
Denysha Marshall, a Personal Banker in Western
Australia and ANZ Indigenous Employment
program participant initially joined the ANZ
Indigenous School Based Traineeship. She says
the program teaches people how to be ambitious
from a young age.
While most young Indigenous people can get a
job, this is the start of a career whether its in a
branch or as a Business Specialist or a Financial
Planner. The traineeship helped me to think about
my future in a more mature manner.
EDUCATI ON & EMPLOYMENT
30 Sept
2011
Baseline
2012
Targets
30 Sept
2012
Results
Senior Executive 22.8% 24% 23.9%
Senior Manager 28.5% 31.5% 28.1%
Manager 40.3% 42% 39.6%
Total Women
in Management
38.2% 40% 37.8%
CREATING EDUCATION AND EMPLOYMENT OPPORTUNITIES
Reach at least 40%representation of women in management; and achieve gender balance and
greater cultural diversity in our key recruitment, talent development and learning programs.
Improve employee engagement, including perceptions of values-based leadership.
Provide 230 positions through our traineeships, graduate program and permanent employment
to people from disadvantaged backgrounds and enhance purchasing criteria to develop more
relationships with companies which employ and support people with disability.
Advance the role of women in society through engagement on key public policy issues,
including advocacy for more accessible, afordable and fexible childcare in Australia.
KEY GOALS
WE SET OUT
TO ACHIEVE
IN 2012
29 28
EXPANDING MONEYMINDED
We are committed to making a signifcant contribution to the
economic development and wellbeing of the communities we
serve through building fnancial literacy and inclusion.
This remains the overwhelming focus of our community
investment activities. It aligns with our purpose as a bank and
we have built notable expertise, working with governments,
community partners and experts to develop our approaches.
MoneyMinded is our fagship program.
We developed our MoneyMinded programin Australia in
consultation with the community sector, educators and
government with the goal of improving peoples confdence in
managing money efectively. In support of our super regional
strategy, MoneyMinded has been adapted for use across our
Region. The programis nowdelivered in 13 countries and in
2012 we ran newpilots in India, Indonesia, Solomon Islands,
Timor Leste, Vietnam, Kiribati, Vanuatu and NewZealand.
In NewZealand, we are partnering with the Solomon Group in
South Auckland to pilot MoneyMinded. Eleven Solomon Group
staf received accreditation as MoneyMinded facilitators in 2012
and 70 clients have already completed the pilot program.
In Indonesia we are delivering MoneyMinded by partnering
with Yayasan Cinta Anak Bangsa (YCAB). Working closely with
YCAB, a not-for-proft organisation that provides micro loans
to women in underdeveloped areas, we help the organisation
to deliver MoneyMinded training to their clients. As a pilot
project in 2012, we trained 150 YCAB clients.
RMIT University evaluated the impacts of MoneyMinded on
participants who have completed the program in Fiji and
Papua New Guinea. Key fndings are:
74%increased their monthly savings deposits and nearly all
(97%) reported a greater capacity to make ends meet
91%encouraged their children and family members to save
participants feeling completely satisfed with life
increased 51%.
More than 200,000 people have participated in MoneyMinded
and more than 6,000 facilitators have been trained to deliver
the program internationally since 2005, but there is still much
to be done. Working with our partners, we aim to reach a
further 200,000 people over the next fve years.
MONEYSMART WEEK
We partnered with businesses, community organisations
and government in Australias inaugural MoneySmart Week,
a national not-for-proft initiative aimed at promoting the
importance of fnancial literacy and raising awareness of
programs and support available.
We encourage our staf and customers to be money
smart byproviding seminars on money management and
promoting the use of the free online Money Health Check tool
via our branch network and website, anz.com.
BUI LDI NG FI NANCI AL CAPABI LI TY
BUILDING FINANCIAL CAPABILITY
WE HAVE A LONG COMMITMENT TO BUILDING MONEY MANAGEMENT SKILLS AND
SAVINGS OF DISADVANTAGED GROUPS IN AUSTRALIA AND ACROSS OUR REGION.
IN 2012 ASTRATEGIC REVIEW OF OUR AUSTRALIAN PROGRAMS FOUND THEY ARE
MARKET-LEADING, PROVIDING REAL SOCIAL BENEFITS TO OUR COMMUNITY THROUGH
MONEYMINDED, MONEYBUSINESS AND SAVERPLUS.
Our approach to advancing fnancial literacy in Australia
has been recognised with Outstanding MoneySmart Week
Awards, for Research and Community, two of the four award
categories.
The ANZ Survey of Adult Financial Literacy in Australia is
conducted every three years. The Survey identifes groups
with low levels of fnancial literacy and provides insight
into the attitudes and behaviours which determine how
a person perceives and manages their fnances. It is the
only Australian survey of its kind, and assists policy makers,
community organisations and other companies to develop
targeted programs to lift fnancial literacy levels.
At the most recent Survey launch, Peter Kell, ASIC
Commissioner said, ASIC welcomes ANZs long-term
commitment to fnancial literacy and to this national
survey. OECD research tells us that this survey is the
most frequently repeated long running national fnancial
literacy survey in the world. The longevity of this survey
is vital, as it helps us to track progress in improving the
fnancial skills, knowledge and behaviour of Australians.
The survey also helps ASIC to better target and focus our
fnancial literacy eforts.
Saver Plus is ANZs fnancial education and matched savings
program developed with the Brotherhood of St Laurence
(BSL) and delivered by BSL, Berry Street, The Benevolent
Society, The Smith Family and other local community
organisations. Since 2003, it has assisted around 14,000
Australians to develop a savings habit. A further 10,000
Australians are expected to participate in Saver Plus
between 2012 and 2014.
More than 87%of Saver Plus participants have developed a
savings habit, continuing to save at the same rate, or more,
for up to three years after completion.
I can see us actually having a good future now,
and not one where were struggling from pay
cheque to pay cheque. Its through doing Saver
Plus and MoneyMinded that Im a lot more
driven to save. I look at what I can achieve
now and I know that the program helped me
get to where I am today. I feel like Ive won
the fnancial war.
DELPHI ANDERSON,
SAVER PLUS PARTICIPANT
Question to participants: Describe your
savings pattern. Figures are percentages
Before
MoneyMinded
After
MoneyMinded Change
I save a set amount on a regular basis 13.3 34.7 21.4
I save what is left over after expenses on a regular basis 13.3 32.7 19.4
I save odd amounts when I can 43.9 27.6 (16.3)
I was never able to save 29.6 5.1 (24.5)
CASE STUDY ONE: IMPACT OF MONEYMINDED IN AUSTRALIA
CHANGES IN SAVINGS PATTERN
Source: MoneyMinded Summary Report (The Reach and Impact of MoneyMinded in Asia Pacifc 20102011). May 2012.
Survey: Participants attending MoneyMinded sessions between 1 October 2010 to 30 September 2011.
Sample Size: Estimated total of 30,215 people in Australia and New Zealand.
FINANCIAL CAPABILITY
Reach30,000 people fromlow-income anddisadvantagedbackgrounds withour MoneyMinded
fnancial capability program.
Report publicly and engage key stakeholders in strategic review.
Enrol 14,250 people inour Saver Plus programacross Australia by 2014.
KEY GOALS
WE SET OUT
TO ACHIEVE
IN 2012
31 30
HELPI NG BRI DGE URBAN & RURAL ECONOMI C & SOCI AL DI VI DES
AS CITIES CONTINUE TO GROW, MORE JOBS ARE IN URBAN ENVIRONMENTS AND THE
OPPORTUNITY GAP BETWEEN COMMUNITIES IN URBAN AND RURAL SETTINGS BECOMES
MORE PRONOUNCED.
SUPPORTING NATIONAL AGENDAS
Helping bridge economic and social divides between urban
and rural regions is a signifcant priority for governments
and communities in many of our markets. Improving access
to banking and encouraging fnancial inclusion are key ways
we can make a diference.
We have been operating in the Pacifc for over 130 years and
have over 40%of banking market share. Many governments
in the region look to us to demonstrate good practice
banking models and to support them in their eforts to
promote development opportunities in their own countries
and links between them, the rest of Asia, Australia and
New Zealand.
Our ability to support these agendas is frequently tied to
our licence to operate. Bridging urban and rural divides by
providing fair, safe and afordable products and services, as
well as targeted fnancial literacy and inclusion programs,
are thus critical to our success and to the prosperity of those
communities.
WORKING WITH RURAL COMMUNITIES IN ASIA PACIFIC
Our rural banking service in Fiji provides face-to-face
banking services to more than 300 communities and
170 schools through purpose-built trucks, banktainers,
thattravel between remote villages.
We have extended the service to other Pacifc island
countries, now serving nearly 90,000 people throughout
Fiji, the Solomon Islands, Samoa and Vanuatu. As part of
the services, we also conduct fnancial literacy education
through MoneyMinded Pacifc.
INNOVATIVE BANKING SOLUTIONS
In June 2012 we opened our frst banktainer in Papua New
Guinea (PNG). This is our frst full service branch able to be
dropped in to service remote communities, such as Lihir
Island, an important natural resources hub in PNG. This
innovative, transportable solution provides international
companies and the Lihir community with critical banking
services that connect customers to our main branch in Port
Moresby, as well as to expertise across our regional network.
We developed another innovation in response to the severe
foods in Fiji in early 2012. Our branch in Nadi, a town
described as the gateway to Fiji, is now the frst in ANZs
network to have a waterproof design, which can be used in
food-prone areas around the world. When natural disasters
occur, our businesses can be among the frst to recover and
play a vital role in restoring impacted economies.
This year, as part of a commitment to support micro-
fnance institutions in the Asia Pacifc region, three of
our high-performing staf participated in three-month
secondments, facilitated by Australian Volunteers
International (AVI).
Casey Morecroft from our Institutional Agribusiness team
worked with the Pacifc Islands Private Sector Organisation
(PIPSO). Caseys work was presented at the 2012 Pacifc
Islands Forum in the Cook Islands, attended by Australian
Prime Minister Julia Gillard and US Secretary of State
Hillary Clinton. It highlighted that a major obstacle to
private sector development in the Pacifc, with high rural
populations, is peoples lack of access to banking services.
Mobile phone banking is one way to address this. With
six million people in the Pacifc currently unable to access
fnancial services, but rapidly growing mobile phone
penetration, as high as 60%in Samoa and 70%in Papua
New Guinea, it is a critical channel ofering the ability for
people to beneft quickly from banking infrastructure.
In 2012 we overcame impediments to implementing our
mobile phone banking services in key Pacifc markets and
have targeted reaching 50,000 people in 2013.
PROMOTING RURAL DEVELOPMENT IN WESTERN CHINA
We continue to support rural industries in China through
our extensive rural fnance expertise, and to foster and
improve economic sustainability among rural farmers. For
example, our Chongqing Liangping ANZ Rural Bank helps
businesses in aquaculture, livestock, tea, medicine culture
and silk worm industries.
One such business customer used to employ several farmers
to extract plant oil in a time-consuming process, selling
only to local villagers. Through loans and training by ANZ
staf, in aspects of fnancial and enterprise management,
the business has grown signifcantly in size so that by 2012
it has become a leading enterprise in the municipality.
WORKING WITH INDIGENOUS AUSTRALIANS
In Australia, we have demonstrated our strong commitment
to supporting Indigenous communities through a wide
range of activities, including our MoneyBusiness Program
and our Indigenous Action Plan.
MoneyBusiness is an adult fnancial education program
adapted specifcally to build the money management
skills and confdence of Indigenous Australians and to
help develop a stronger savings culture in Indigenous
communities. It was developed by ANZ and the Australian
Government. As of 2012, it is being delivered by community
agencies in more than 215 communities around Australia.
In June this year, we released our newIndigenous Action Plan,
which continues our commitment to provide employment and
training opportunities for Indigenous people.
In May 2012 ANZ was selected to manage all of the
Indigenous Land Corporations (ILC) transactional banking.
The ILC is an independent statutory authority of the
Australian Government. A deciding factor in our winning
the tender, in addition to our core banking skills, was
ANZs clear commitment to Indigenous communities
demonstrated by our Indigenous employment and trainee
programs and MoneyBusiness.
FURTHER SUPPORTINGRURAL ANDREGIONAL AUSTRALIA
In June 2012 we partnered with the Australian Beef Industry
Foundation (ABIF) to deliver a scholarship program aimed
at developing future generations of Australian rural
agribusiness leaders.
Frank Archer, Chairman of the ABIF, said, There is a defnite
skills shortage within rural and regional areas across
Australia, but particularly so in the beef industry. ANZ has
recognised this as an important issue for the industry and is
working hand-in-hand with us to provide the much-needed
support this issue needs.
More broadly, we support rural and regional communities in
Australia through our Seeds of Renewal program, in which
we partner with the Foundation for Rural and Regional
Renewal. The program provides small grants of up to
AU$15,000 to community organisations in remote areas to
support local leadership development and new education
and employment opportunities. This year, we supported
30 new projects across regional Australia.
The arrival of the ANZ banktainer has defnitely
sparked the interest of the Lihir community;
this is evident by the lines of ANZ customers
queued to use the ATMs and teller service.
The banktainer is being used by mine workers
as well as the local community.
Importantly for Newcrest, the additional banking
facilities are proving to be a great convenience
to the Lihirian community and its arrival will no
doubt enable more people to be introduced to
and have access to banking services.
Newcrest congratulates ANZ for establishing
the banktainer.
PETER JOHN AITSI,
COUNTRY MANAGER PNG
Newcrest Mining Limited
Implement mobile phone banking in Papua NewGuinea, Vanuatu, Samoa and Solomon Islands
in 2012, then inTimor Leste in 2013.
Launch the Pacifc MoneyTransfer Card to enable cost-efective remittances and sign up
2,800 customers.
KEY GOALS
WE SET OUT
TO ACHIEVE
IN 2012
33 32
Further implementation of our EMS across our global
business in 2013 will enable us to establish a group-wide
baseline for our energy use and associated GHG emissions
with improved granularity to set targets for global
reductions going forward.
IMPROVING OUR PERFORMANCE
We monitor, set targets and report progress annually
on a number of environmental impact areas relating to
our Australian and New Zealand operations, including:
energy, greenhouse gas emissions, water, paper and
resource efciency.
Our Australian operations account for over two thirds of
our global GHG emissions. In 2012 ANZ reduced absolute
GHG emissions from our Australian operations by over 5%
against the 2011 year baseline. This was achieved through
implementation of a number of operational improvements
in our property portfolio and reductions in corporate travel.
In 2012, energy savings at our headquarters, the ANZ Centre
in Melbourne, made the largest single impact in reducing
emissions from our commercial portfolio. Since moving into
this building we have reduced our GHG emissions by over
15%against our 2010 baseline.
Further savings have also been achieved through the
relocation of our Queensland head ofce to a 6-Star Green
Star building in Brisbanes central business district. Our
rolling refurbishment program across our bank branch
network has continued in 2012, and has included the
installation of a range of energy efciency measures that
have further contributed to our GHG emission reductions.
After energy use in our commercial buildings, GHG
emissions associated with air travel represent our next
greatest emissions source. In 2012 we reduced our global
air travel emissions by approximately one quarter, achieving
associated cost savings of over $15 million, through
minimising non-customer-related travel, coupled with the
continued rollout of virtual communication technology,
notably telepresence video-conferencing.
Travelling to see customers is a critical part of our service.
In NewZealand, ANZ leases over 700 vehicles and in 2009 we
commenced a programto lease only four-cylinder vehicles.
By the end of 2012, all remaining six-cylinder vehicles in our
NewZealand feet will have been replaced with four-cylinder
models, improving the fuel efciency of our vehicle feet,
reducing our GHG emissions and delivering cost savings of
approximately $0.5 million per annum.
We remain committed to maintaining carbon neutrality
across our global business, with a priority on reducing our
footprint, supported by the purchase of international ofsets
to compensate for unavoidable carbon emissions. Carbon
ofsets purchased by ANZ are accredited to the Australian
Governments National Carbon Ofset Standard (NCOS).
SUPPORTI NG URBAN SUSTAI NABI LI TY
SUPPORTING URBAN SUSTAINABILITY
AS MUCH OF THE ASIA PACIFIC REGION CONTINUES TO URBANISE, IMPROVING
URBAN SUSTAINABILITY IS AN INCREASING PRIORITY FOR GOVERNMENTS,
CUSTOMERS AND COMMUNITIES.
ENERGY MIX IS KEY TO URBAN SUSTAINABILITY
We are committed to improving environmental
sustainability performance in the cities where we operate.
We actively support our customers and suppliers in
this regard and are committed to delivering sound
environmental outcomes in our workplaces and branches.
ANZs activities in the energy sector need to meet
international performance standards, as expressed in our
Energy policy. When considering fnancing the energy
sector, we support customers in examining lower carbon
options and our decision-making framework is infuenced
by explicit thresholds of carbon intensity of energy
production. High emissions production proposals go
directly to our Reputation Risk Committee for consideration.
Our Energy policy also includes a target to increase
our lending to lower carbon emission generation by
1520%by 2020
1
.
To see our full suite of sector and other policies, go to
anz.com/governance.
RESPONDING TO REGULATORY ENVIRONMENTS
An important development this year was the introduction of
the Australian Governments Clean Energy Future package,
which came into efect on 1 July 2012.
In preparation, we established ANZs Carbon Working
Group to ensure that both ANZ and our customers were
well prepared for its impacts, able to manage any risks, and
beneft from opportunities of the new legislation.
We have notable experience in this. In response to the
New Zealand Emissions Trading Scheme and other
international carbon markets we have an established
Energy and Emissions Trading desk. Through the trading
desk we assist our clients in managing their liabilities arising
under such schemes.
We also work with our customers to reduce energy and
other resource consumption across their businesses by
fnancing more efcient plant, equipment and buildings.
IMPLEMENTATION OF OUR ENVIRONMENTAL
MANAGEMENT SYSTEM IN ASIA
In our own workplaces, we continually seek to identify,
control and improve our environmental impacts. Our
Environmental Management System (EMS) provides a
structured approach to assessing the operational impact
of our physical footprint on the environment and helps set
targets to improve our performance.
Following a successful pilot in Singapore in 2011, we have
continued to roll out the EMS across our operations in Asia
during 2012, with a focus on Cambodia and India.
The continued expansion of the EMS across Asia has
included the extension of our online environmental
reporting, which now captures data from over 30 countries,
thereby improving our ability to manage our global
environmental performance.
Contact has partnered with ANZ because they
have a strong track record in delivering Export
Credit Agency facilities in the New Zealand
market, but also signifcant experience working
with the New Zealand electricity market.
Contact is currently constructing the 166MW
Te Mihi geothermal power station, located
near Taupo. When commissioned, Te Mihi
will provide New Zealand with additional
renewable, baseload electricity to power more
than 100,000 homes.
LOUISE TONG,
CORPORATE TREASURER
Contact Energy
1
URBAN SUSTAINABILITY
Evaluate the pilot of our revised Environmental Management System and expand to cover
two material markets in our Asian business.
Work towards achieving our three-year environmental targets in Australia and New Zealand,
including greenhouse gas, premises energy, commercial waste, water, paper and air travel.
KEY GOALS
WE SET OUT
TO ACHIEVE
IN 2012
35 34
NON-FINANCIAL
FIVE-YEAR PERFORMANCE SUMMARY 20082012
2012 2011 2010 2009 2008
OUR CUSTOMERS
Retail customer satisfaction
Australia
1
76% 79.8% 79.9% 76.5% 77.1%
New Zealand
2
89% 89% 85% 86% 88%
Institutional Relationship Strength Index ranking
3
Australia 2 1 1(equal) 2 1
New Zealand 1 1 1 3 1
OUR PEOPLE
Total employees (FTE) 48,239 50,297
4
47,099 37,687 36,925
Employee engagement survey results 70% 70% 64% 66%
5
62%
Total women in management 37.8% 38.2% 38.4% 36.8% 37%
Investment in learning and development ($m) 42.5 50.2 47.5 43 58.5
Lost Time Injury Frequency Rate
Australia 1.5 2.1 2.2 1.9 2.4
Australia
6
1.2 1.5 1.7 1.4 1.4
New Zealand 0.9 1.8 2.2 1.5 2
APEA
7
0.3
India
8
0.3 0.0 0.0 0.60
OUR COMMUNI TI ES
9
Total value of community investment ($m) 14.9 16.9 16.2 22.2 18.9
Volunteer hours 86,758 91,410 90,651 58,097 79,620
OUR ENVI RONMENT
10
GHG emissions
11
(tonnes CO
2
-e)
Australia 163,906 166,311
12
170,299 161,985 154,335
New Zealand
13
14,009 11,164 12,429 13,700 16,072
Asia Pacifc, Europe and America 31,164 30,189 22,725
Paper consumption (tonnes per FTE)
14
Australia 0.163 0.167 0.211 0.178 0.189
New Zealand 0.155 0.125 0.148 0.146 0.163
1
Source: Roy Morgan Research Main Financial Institution.
2
Source: Nielsen Consumer Finance Monitor.
3
Source: Peter Lee Associates
Large Corporate and Institutional Relationship Banking Report 2012. Ranked against top four competitors.
4
2011 FTE numbers adjusted to
include APEA contractors.
5
Interimsurvey and change in provider; 2009 results onwards are not comparable with previous years.
6
LTIFR
only includes LTIs that result in claims.
7
APEA started to calculate LTIF in 2011.
8
India started to calculate LTIF in 2009.
9
Community
investment is measured according to the London Benchmarking Group Methodology and does not include foregone revenue.
10
2012 data
is pending external verifcation. A full, verifed environmental report will be available on anz.com
11
Scope 1 + 2 only. A full GHG profle
(scope 1, 2 and 3) will be available on anz.com
12
Figure updated from 166,756 as reported last year due to updates of estimates to actual
fgure.
13
Emission factors were updated by the NZ Government in 2011 leading to a revision of 2009/10 data.
14
Includes both ofce and
print (customer) paper.
FINANCIAL
FIVE-YEAR SUMMARY 20082012
2012
$m
2011
$m
2010
$m
2009
$m
2008
$m
UNDERLYI NG FI NANCI AL PERFORMANCE
1
Net interest income
2
12,111 11,498 10,862 9,890 7,855
Other operating income
2
5,468 5,314 4,920 4,477 4,440
Operating expenses (8,022) (7,718) (6,971) (6,068) (5,406)
Proft before credit impairment and income tax 9,557 9,094 8,811 8,299 6,889
Provision for credit impairment (1,246) (1,211) (1,820) (3,056) (2,090)
Income tax expense and non-controlling interest (2,300) (2,231) (1,966) (1,471) (1,373)
Underlying proft
1
6,011 5,652 5,025 3,772 3,426
Adjustments between statutory and underlying proft
1
(350) (297) (524) (829) (107)
Proft attributable to shareholders of the Company 5,661 5,355 4,501 2,943 3,319
FI NANCI AL POSI TI ON
Assets
2,3
642,127 604,213 531,703 476,987 470,293
Net Assets 41,220 37,954 34,155 32,429 26,552
Tier 1 capital ratio
4
10.8% 10.9% 10.1% 10.6% 7.7%
Return on average ordinary equity
5
14.6% 15.3% 13.9% 10.3% 14.5%
Return on average assets
2
0.9% 0.9% 0.9% 0.6% 0.8%
Cost to income ratio
1
45.6% 45.9% 44.2% 42.2% 44.0%
SHAREHOLDER VALUE ORDI NARY SHARES
Total return to shareholders
(share price movement plus dividends)
35.4% (12.6%) 1.9% 40.3% (33.5%)
Market capitalisation 67,255 51,319 60,614 61,085 38,263
Dividend 145 cents 140 cents 126 cents 102 cents 136 cents
Share price 30 September closing price $24.75 $19.52 $23.68 $24.39 $18.75
OTHER I NFORMATI ON
Points of representation
6
1,337 1,381 1,394 1,352 1,346
Number of employees (full-time equivalent)
7
48,239 50,297 47,099 37,687 36,925
Number of shareholders
8
438,958 442,943 411,692 396,181 376,813
FIVE-YEAR SUMMARY
FI NANCI AL SUMMARY & REMUNERATI ON
1
Profit has been adjusted for certain non-core items to arrive at underlying profit, the result for the ongoing business activities of
the Group. These adjustments have been determined on a consistent basis with those made in prior years. The adjustments made in
arriving at underlying profit are included in statutory profit which is subject to audit within the context of the Group statutory audit
opinion. Underlying profit is not audited, however, the external auditor has informed the Audit Committee that the adjustments, and
the presentation thereof, are based on the guidelines released by the Australian Institute of Company Directors (AICD) and the Financial
Services Institute of Australasia (FINSIA), and have been determined on a consistent basis with those made in prior years. Refer to page
204 to 206 for analysis of the adjustments between statutory profit and underlying profit.
2
The 2011 comparative information has been
restated to reflect the impact of the current period reporting treatment of derivative related collateral posted/received and the associated
interest income/expense. Refer to note 1 of the financial statement for further details. The 2008 to 2010 comparative information has not
been restated.
3
In 2010, consolidated assets included assets from ANZ Wealth Australia (formerly OnePath Australia), OnePath NZ (formerly
ING NZ), Landmark and RBS acquired during the financial year.
4
Calculated in accordance with APRA requirements effective at the relevant
date. Basel II has been applied from 1 January 2008.
5
Average ordinary equity excludes non-controlling interests and preference shares.
6
Includes branches, offices, representative offices and agencies.
7
Comparative amounts have changed reflecting an amendment to FTE to
align to the current year methodology (2011: FTE increased by 1,359).
8
Excludes employees whose only ANZ shares are held in trust under
ANZ employee share schemes.
37 36

Financial
Year
Short-term
NED Benefts
$
Post-
Employment
$
Total
Remuneration
$
CURRENT NON- EXECUTI VE DI RECTORS
J Morschel
2012 775,000 15,949 790,949
2011 775,000 15,343 790,343
GClark
2012 300,000 15,949 315,949
2011 300,000 15,343 315,343
P Dwyer
1
2012 136,250 8,061 144,311
P Hay
2012 302,500 15,949 318,449
2011 302,500 15,343 317,843
H Lee
2012 280,000 15,949 295,949
2011 280,000 15,343 295,343
I Macfarlane
2012 314,500 15,949 330,449
2011 314,500 15,343 329,843
D Meiklejohn
2012 321,322 15,949 337,271
2011 320,186 15,343 335,529
AWatkins
2012 312,500 15,949 328,449
2011 312,500 15,343 327,843
Total of all Non-Executive Directors
2012 2,742,072 119,704 2,861,776
2011 2,604,686 107,401 2,712,087
1
P Dwyer commenced as a Non-Executive Director on 1 April 2012 so remuneration refects amounts received
for the partial service for the 2012 year.
NON-EXECUTIVE
DIRECTORS REMUNERATION
THE BOARD IS RESPONSIBLE TO SHAREHOLDERS FOR THE GOVERNANCE OF ANZ, AND
OVERSEES ANZS OPERATIONS AND FINANCIAL PERFORMANCE. IT APPROVES THE STRATEGIC
DIRECTION, FINANCIAL OBJECTIVES AND APPROPRIATE RISK APPETITE FOR THE ORGANISATION.
REMUNERATION
OVERVIEW
THE FOLLOWING PROVIDES A SUMMARY OF THE REMUNERATION FOR THE CHIEF EXECUTIVE
OFFICER (CEO) AND DISCLOSED EXECUTIVES KEY MANAGEMENT PERSONNEL*.
A MORE DETAILED REMUNERATION REPORT IS CONTAINED IN THE ANNUAL REPORT PAGE 13.
THEREPORT CAN BE ACCESSED VIA THE ANZ WEBSITE http://anz.com/annualreport AS WELL
AS IN HARD COPY.
ANZs remuneration framework is designed to focus
our people on creating and enhancing value for our
shareholders and other stakeholders. We aim to ensure
there is a strong alignment between the short and
long-term interests of both our shareholders and the
executive team.
There are three components to remuneration Fixed
Remuneration, Short Term Incentive (STI) and Long Term
Incentive (LTI). In the case of the CEO, his remuneration
opportunity is split evenly between the three components.
In the case of Disclosed Executives, a signifcant portion of
their remuneration is at risk with the outcomes difering
from executive to executive. Refer to the Annual Report,
page 16, for a detailed description of theComposition of
Remuneration at ANZ.
The following summary has been prepared to provide
shareholders with a view of remuneration structure and
how remuneration was paid or communicated to the CEO
and Disclosed Executives for 2011 and 2012 and includes:
the actual amounts or grants made in respect of the years
2011 and 2012;
any amounts which had to be deferred in respect of the
years 2011 and 2012; and
the actual amounts received in respect of the years
2011 and 2012.
* The term Key Management Personnel is defned under the Corporations Act.
39 38
FI XED STI LTI TOTAL REMUNERATI ON
Name
Financial
Year
Remuneration
1

$
Non
monetary
benefts
$
Cash
$
Deferred as
equity
$
Total
$
As % of
target
%
As % of
maximum
opportunity
%
Total
(deferred as
equity)
$
Received
$
Deferred as
equity
$
Total
$
CEO AND CURRENT DI SCLOSED EXECUTI VES
M Smith
2

2012 3,150,000 121,900 1,900,000 1,800,000 3,700,000 117% 47% 3,150,000 5,171,900 4,950,000 10,121,900
2011 3,150,000 105,515 1,750,000 1,550,000 3,300,000 105% 42% 3,150,000 5,005,515 4,700,000 9,705,515
P Chronican
3

Chief Executive Ofcer, Australia
2012 1,300,000 7,590 850,000 750,000 1,600,000 103% 41% 650,000 2,157,590 1,400,000 3,557,590
2011 1,300,000 5,744 900,000 700,000 1,600,000 103% 41% 650,000 2,205,744 1,350,000 3,555,744
S Elliott
4

Chief Financial Ofcer
2012 1,187,000 40,853 1,100,000 1,000,000 2,100,000 140% 56% 1,200,000 2,327,853 2,200,000 4,527,853
2011 1,050,000 10,191 604,000 404,000 1,008,000 80% 32% 650,000 1,664,191 1,054,000 2,718,191
D Hisco
5

Chief Executive Ofcer, New Zealand
2012 1,000,000 309,757 900,000 800,000 1,700,000 142% 57% 500,000 2,209,757 1,300,000 3,509,757
2011 960,000 357,283 902,400 710,400 1,612,800 140% 56% 480,000 2,219,683 1,190,400 3,410,083
GHodges
6

Deputy Chief Executive Ofcer
2012 1,000,000 13,789 650,000 550,000 1,200,000 100% 40% 500,000 1,663,789 1,050,000 2,713,789
2011 1,000,000 24,350 700,000 500,000 1,200,000 100% 40% 500,000 1,724,350 1,000,000 2,724,350
J Phillips
7

CEO Global Wealth & Private Banking
2012 580,000 5,500 377,000 319,000 696,000 100% 40% 290,000 962,500 609,000 1,571,500
AThursby
8

Chief Executive Ofcer, International & Institutional Banking
2012 1,187,000 7,590 1,100,000 1,000,000 2,100,000 140% 56% 1,200,000 2,294,590 2,200,000 4,494,590
2011 1,050,000 7,375 900,000 700,000 1,600,000 127% 51% 700,000 1,957,375 1,400,000 3,357,375
NWilliams
9

Chief Risk Ofcer
2012 790,000 32,675 533,250 454,250 987,500 104% 42% 474,000 1,355,925 928,250 2,284,175
REMUNERATION
OVERVIEW
REMUNERATION
OVERVIEW
NON-STATUTORY REMUNERATION TABLE
1 Fixed remuneration was unchanged for Disclosed Executives, other than those promoted during the year whose remuneration was
increased to refect expanded responsibilities.
2 M Smith The 2012 LTI relates to the LTI grant that is proposed for 2012, subject to approval by shareholders at the 2012 Annual General
Meeting. The 2011 LTI relates to the LTI grant approved by shareholders at the 2011 Annual General Meeting. Non monetary benefts
include car parking, life insurance and taxation services. In 2012 equity to the value of $1,936,189 vested in respect of previously disclosed
deferred STI granted in 2009 and 2010. Also, equity to the value of $5,370,176 vested in respect of previously disclosed deferred LTI
granted in 2007, as approved by shareholders. In addition, equity to the value of $4,732,490 vested in respect of previously disclosed
Special Options granted in 2008, as approved by shareholders.
3 P Chronican Non monetary benefts include car parking expenses. In 2012 equity to the value of $262,017 vested in respect of
previously disclosed deferred STI granted in 2010.
4 S Elliott Fixed remuneration represents what was paid during the year (an increase to $1,250,000 occurred at date of promotion,
1 March 2012 this fgure has been referenced to calculate STI as a %of target and maximum opportunity). Non monetary benefts
include car parking and taxation services/expenses. In 2012 equity to the value of $273,800 vested in respect of previously disclosed
deferred STI granted in 2009 and 2010.
5 D Hisco Commenced in role on 13 October 2010 so 2011 remuneration refects amounts received for the partial service for the
2011 year. Non monetary benefts include relocation expenses such as housing assistance, and car parking and taxation services
expenses. In 2012 equity to the value of $297,076 vested in respect of deferred STI granted in 2009 and 2010. In addition, equity to the
value of $508,199 vested in respect of deferred LTI granted in 2008.
6 G Hodges Non monetary benefts include car parking and taxation services. In 2012 equity to the value of $355,078 vested in respect of
previously disclosed deferred STI granted in 2009 and 2010. In addition, equity to the value of $1,092,491 vested in respect of previously
disclosed deferred LTI granted in 2008.
7 J Phillips Commenced in role 1 March 2012 so remuneration (fxed, STI and LTI) refects amounts received for the partial service for the
2012 year. Non monetary benefts include taxation services.
8 AThursby Fixed remuneration represents what was paid during the year (an increase to $1,250,000 occurred at date of promotion,
1 March 2012 this fgure has been referenced to calculate STI as a %of target and maximum opportunity). Non monetary benefts
include car parking expenses. In 2012 equity to the value of $1,047,116 vested in respect of previously disclosed deferred STI granted in
2009 and 2010 and equity to the value of $1,201,741 vested in respect of previously disclosed deferred LTI granted in 2008. In addition,
equity to the value of $1,081,040 vested in respect of previously disclosed equity granted in 2009 in connection with his commencement
with ANZ.
9 N Williams Commenced in role 17 December 2011 so remuneration (fxed, STI and LTI) refects amounts received for the partial service
for the 2012 year. Non monetary benefts include relocation, car parking and taxation services expenses.
41 40
HANDY CONTACTS
REGISTERED OFFICE
ANZ Centre Melbourne
Level 9, 833 Collins Street
Docklands VIC 3008 Australia
Telephone +61 3 9273 5555
Facsimile +61 3 8542 5252
Company Secretary: John Priestley
INVESTOR RELATIONS
Telephone +61 3 8654 7682
Facsimile +61 3 8654 8886
Email: investor.relations@anz.com
Website: shareholder.anz.com
Group General Manager Investor Relations: Jill Craig
CORPORATE AFFAIRS/CORPORATE RESPONSIBILITY
Telephone +61 3 8654 3276
Facsimile +61 3 8654 8886
Group General Manager Corporate Afairs: Gerard Brown
SHARE REGISTRAR
AUSTRALIA
Computershare Investor Services Pty Ltd
GPO Box 2975 Melbourne
VIC 3001 Australia
Telephone 1800 11 33 99 (Within Australia)
+61 3 9415 4010 (International Callers)
Facsimile +61 3 9473 2500
anzshareregistry@computershare.com.au
NEWZEALAND
Computershare Investor Services Limited
Private Bag 92119 Auckland 1142
New Zealand
Telephone 0800 174 007
Facsimile +64 9 488 8787
UNITED KINGDOM
Computershare Investor Services plc
The Pavilions
Bridgwater Road Bristol BS99 6ZZ
United Kingdom
Telephone +44 870 702 0000
Facsimile +44 870 703 6101
UNITED STATES
The Bank of New York Mellon
P.O. Box 358516
Pittsburg, PA 15252-8516
Callers outside USA: 1-201-680-6825
Callers within USA (toll free): 1-888-269-2377
(1-888-BNY-ADRS)
Email: shrrelations@bnymelon.com
www.bnymellon.com/shareowner
OUR INTERNATIONAL PRESENCE
Australia
New Zealand
Asia Cambodia, China, Hong Kong, India, Indonesia,
Japan, Korea, Laos, Malaysia, the Philippines,
Singapore, Taiwan, Thailand, Vietnam
Europe and United Kingdom
Pacifc American Samoa, Cook Islands, Fiji, Guam,
Kiribati, New Caledonia, Papua New Guinea, Samoa,
Solomon Islands, Timor-Leste, Tonga, Vanuatu
Middle East
United States of America
IMPORTANT DATES FOR
SHAREHOLDERS*
Date Event
Interim Results Announcement 30 April 2013
Interim Dividend Ex-Date 9 May 2013
Interim Dividend Record Date 15 May 2013
Interim Dividend Payment Date 1 July 2013
Annual Results Announcement 29 October 2013
Final Dividend Ex-Date 7 November 2013
Final Dividend Record Date 13 November 2013
Final Dividend Payment Date 18 December 2013
Annual General Meeting 18 December 2013
* If there are any changes to these dates, the Australian
Securities Exchange will be notifed accordingly.
42
anz.com Australia and New Zealand Banking Group Limited ABN 11 005 357 522

2012 Shareholder Review

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